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== Psychology ==   

== Psychology ==   

A bias is sometimes defined as a violation of a normative standard. For example, the fact that people will be less likely to trade an object they already have for another one—regardless of which object they initially possess—violates the normative standard that preference for an object should not be swayed by what is already possessed.  

A bias is sometimes defined as a violation of a normative standard. For example, the fact that people will be less likely to trade an object they already have for another one—regardless of which object they initially possess—violates the normative standard that preference for an object should not be swayed by what is already possessed. A common form of bias in psychology is [[cognitive bias]], which is a mental error caused by our simplified information processing strategies.

Studies of biases in psychology have shown that many principles assumed in economics are incorrect (Kahneman 2003) by illustrating that the notion of a free [[rational agent]] is idealistic.

Studies of biases in psychology have shown that many principles assumed in economics are incorrect (Kahneman 2003) by illustrating that the notion of a free [[rational agent]] is idealistic.