Notebook & Site Glossary:

A B C D E F G H I L N O P R S T U

Reference Point

In behavioral economics, a reference point is the baseline or standard that individuals use to evaluate gains and losses, guiding their perception of outcomes in decision-making. Rather than considering outcomes in absolute terms, people often frame them relative to this reference point. This concept is central to prospect theory, as the reference point determines whether an outcome feels like a gain or a loss, thereby influencing emotions and choices.

Reference Point (Psychological)

A psychological reference point is an internal benchmark—often subconscious—that individuals use to evaluate experiences, make judgments, and assign emotional meaning to events. It acts as a mental "baseline" for comparison, determining whether something feels like a gain or loss, success or failure, threat or opportunity.

Reiss Motivation Profile

Developed by psychologist Steven Reiss, the Reiss Motivation Profile® (RMP) is a validated framework that identifies 16 basic desires driving human behavior. Unlike simplified models (e.g., Maslow’s hierarchy), the RMP recognizes that motivation is highly individualized—people prioritize these desires differently, shaping their goals, values, and conflicts.

Response Rule

A response rule (also known as a strategy or best-response function) is a decision-making rule that specifies how a player will act in response to the actions or strategies of other players in a game. It defines the optimal choice or action for a player, given the choices or strategies of the other players, with the goal of maximizing the player’s payoff or utility.

Index Of Tactical Notebook Articles In Order Of Suggested Reading:

This index is a revision of our now removed Legacy Member Handbook series. New articles are added over time and the index adjusted accordingly. Visist the “Updates” environment (linked in the main navigation menu) to get up to speed or see when new content is added or changes have been made to existing articles.