Behavioral Economics Concepts

Review your Week 1 Learning Activities, especially the Investopedia Resources on Behavioral Finance: Anchoring, Mental Accounting, Herd Behavior, and Prospect Theory located in the “Additional Reading and Video Resources” link on your course page.

Choose two of the following concepts discussed in this week’s materials. 

· Anchoring 

· Mental accounting 

· Herd behavior

· Prospect theory

Define each in your own words and explain how each could apply to your personal financial and credit decisions. Your entire response should be at least 100 words.