Behavioral Bias
The biggest weakness is not being able to own up to weakness.
How can you set up systems to prevent falling victim of lazy thinking?
ποΈ Decision Fatigue
Why do we make worse decisions at the end of the day?
ποΈ Reciprocity
Reciprocity bias describes the impulse to reciprocate actions others have done towards us. The desire to return favours, pay back debts and treat others well could have been a decisive evolutionary advantage for humans as it engenders cooperation. However, reciprocity bias can also work in reverse β in response to unfriendly actions, people will deliver back other unfriendly actions!
ποΈ Confirmation Bias
System one vs system two thinking.
ποΈ Hyperbolic Discounting
Why do we value immediate rewards more than long-term rewards?
ποΈ Ikea Effect
Why do we place disproportionately high value on things we helped to create?
ποΈ Loss Aversion
The pain of losing feels twice much worse than the pleasure of gaining.
Heuristicsβ
Why do we take mental shortcuts?
Study your biases so you can engineer systems to avoid failing pray to them.
System 1 and System 2β
Thinking, Fast and Slow uses behavioral economics to explore the dichotomy between two modes of thought that often highlighting the gap between human perception and reality.
System 1 is quick, intuitive, and emotional with little or no effort and no sense of voluntary control.
System 2 is deep focused mental activity that demands comphrension of chaotic variables.
Human decision-making is not always rational; whether through decision fatigue or laziness; humans tend to fall into traps of cognitive biases that lead to common errors of judgement.
Improvementβ
Study situations to recognise triggers then practice correcting behaviours and develop systems to avoid the circumstances that lead to poor decisions in the first place.
- Develop mantra as tools for clear thinking in times of chaos and pressure.
- Engineer systems that make it impossible to fall into habits of lazy thinking.
Biasesβ
Action Biasβ
Why do we prefer doing something to doing nothing?
Affect Heuristicβ
Why do we rely on our current emotions when making quick decisions?
Ambiguity Effectβ
Why we prefer options that are known to us
Anchoring Biasβ
Why we tend to rely heavily upon the first piece of information we receive
Attentional Biasβ
Why do we focus more on some things than others?
Availability Heuristicβ
Why do we tend to think that things that happened recently are more likely to happen again?
Bandwagon Effectβ
Why do we support opinions as they become more popular?
Barnum Effectβ
Why do we believe our horoscopes?
Base Rate Fallacyβ
Why do we rely on specific information over statistics?
Bikesheddingβ
Why do we focus on trivial things?
Bottom-Dollar Effectβ
Why do we transfer negative emotions about being broke on items that we purchase?
Bounded Rationalityβ
Why are we satisfied by "good enough"?
Bundling Biasβ
Why do we value items purchased in a bundle less than those purchased individually?
Bye-Now Effectβ
Why are we likely to spend more after reading the word βbyeβ?
Cashless Effectβ
Why does paying without physical cash increase the likelihood that we purchase something?
Category Size Biasβ
Why do we think we're more likely to win at the big casino versus the small one?
Choice Overloadβ
Why do we have a harder time choosing when we have more options?
Cognitive Dissonanceβ
Why is it so hard to change someone's beliefs?
Commitment Biasβ
Why do people support their past ideas, even when presented with evidence that they're wrong?
Confirmation Biasβ
Why do we favor our existing beliefs?
Decision Fatigueβ
Why do we make worse decisions at the end of the day?
Declinismβ
Why we feel the past is better compared to what the future holds
Decoy Effectβ
Why do we feel more strongly about one option after a third one is added?
Disposition Effectβ
Why do we tend to hold on to losing investments?
Distinction Biasβ
Why we tend to view two options as more distinctive when evaluating them simultaneously then separately.
Dunning-Kruger Effectβ
Why can we not perceive our own abilities?
Empathy Gapβ
Why do we mispredict how much our emotions influence our behavior?
Endowment Effectβ
Why do we value items more if they belong to us?
Extrinsic Incentive Biasβ
Why do we think others are in it for the money, but weβre in it for the experience?
Framing Effectβ
Why do our decisions depend on how options are presented to us?
Functional Fixednessβ
Why do we have trouble thinking outside the box?
Fundamental Attribution Errorβ
Why do we underestimate the influence of the situation on peopleβs behavior?
Gambler's Fallacyβ
Why do we think a random event is more or less likely to occur if it happened several times in the past?
Google Effectβ
Why do we forget information that we just looked up?
Halo Effectβ
Why do positive impressions produced in one area positively influence our opinions in another area?
Hard-easy Effectβ
Why is our confidence disproportionate to the difficulty of a task?
Hindsight Biasβ
Why do we see unpredictable events as predictable after they occur?
Hot-hand Fallacyβ
Why do we expect previous successful performance to lead to future successful performance?
Hyperbolic Discountingβ
Why do we value immediate rewards more than long-term rewards?
Identifiable Victim Effectβ
Why are we more likely to offer help to a specific individual than a vague group?
IKEA effectβ
Why do we place disproportionately high value on things we helped to create?
Illusion of Controlβ
Why we believe we have more control over the world than we actually do
Illusion of Validityβ
Why are we overconfident in our predictions?
Illusory Correlationβ
Why do we think some things are related when they aren't?
Illusory Truth Effectβ
Why do we believe misinformation more easily when it's repeated many times?
In-group Biasβ
Why do we treat our in-group better than we do our out-group?
Incentivizationβ
Why do we work harder when we are promised a reward?
Just-world Hypothesisβ
Why do we believe that we get what we deserve?
Lag Effectβ
Why does spacing out the repetition of information make one more likely to remember it?
Law of the Instrumentβ
Why do we use the same skills everywhere?
Less-is-better Effectβ
Why do our preferences change depending on whether we judge our options together or separately?
Leveling and Sharpeningβ
Why do we exaggerate some details of a story, but minimize others?
Levels of Processingβ
Why do we remember information that we attach significance to better than information we repeat?
Levels-of-processing Effectβ
Why repetition improve memory retention
Look-elsewhere Effectβ
Why do scientists keep looking for a statistically significant result after failing to find one initially?
Loss Aversionβ
Why do we buy insurance?
Mental Accountingβ
Why do we think less about some purchases than others?
Mere Exposure Effectβ
Why do we prefer things that we are familiar with?
Motivating Uncertainty Effectβ
Why rewards of unknown sizes tend to motivate us more than known rewards
Naive Allocationβ
Why we tend to prefer spreading limited resources evenly across options.
Negativity Biasβ
Why is the news always so depressing?
Noble Edge Effectβ
Why do we tend to favor brands that show care for societal issues?
Nostalgia Effectβ
How do our sentimental feelings for the past influence our actions in the present?
Observer Expectancy Effectβ
Why do we change our behavior when we're being watched?
Omission Biasβ
Why don't we pull the trolley lever?
Optimism Biasβ
Why do we overestimate the probability of success?
Ostrich Effectβ
Why do we prefer to ignore negative information?
Overjustification Effectβ
Why do we lose interest in an activity after we are rewarded for it?
Peak-end Ruleβ
How do our memories differ from our experiences?
Pessimism biasβ
Why do we think we're destined to fail?
Planning Fallacyβ
Why do we underestimate how long it will take to complete a task?
Primacy Effectβ
Why do we only remember the first things on our grocery list?
Primingβ
Why do some ideas prompt other ideas later on without our conscious awareness?
Projection Biasβ
Why do we think our current preferences will remain the same in the future?
Reactive devaluationβ
Why is negotiation so difficult?
Regret Aversionβ
Why do we anticipate regret before we make a decision?
Representativeness Heuristicβ
Why do we use similarity to gauge statistical probability?
Response Biasβ
Why responses to a survey or experiment can be inaccurate due to the nature of the survey or experiment
Restraint Biasβ
Why do we overestimate our self-control?
Rosy Retrospectionβ
Why do we think the good old days were so good?
Salience Biasβ
Why do we focus on items or information that are more prominent and ignore those that are not?
Self-serving Biasβ
Why do we blame external factors for our own mistakes?
Serial Position Effectβ
Why do we better remember items at the beginning or end of a list?
Sexual Overperception Biasβ
Why do men think that women are always flirting with them?
Soscial Normsβ
Why do we follow the behavior of others?
Source Confusionβ
Why we forget where our memories come from, and thereby lose our ability to distinguish the reality or likelihood of each memory.
Spacing Effectβ
Why do we retain information better when we learn it over a long time period?
Spotlight Effectβ
Why do we feel like we stand out more than we really do?
Status Quo Biasβ
Why do we tend to leave things as they are?
Suggestibilityβ
Why is yawning contagious?
Survivorship Biasβ
Why do we misjudge groups by only looking at specific group members?
Take-the-best Heuristicβ
Why do we focus on one characteristic to compare when choosing between alternatives?
Telescoping Effectβ
Why do some things βseem like they just happened yesterday?β
The Illusion of Explanatory Depthβ
Why do we think we understand the world more than we actually do?
The Pygmalion effectβ
Why do we perform better when someone has high expectations of us?
The Sunk Cost Fallacyβ
Why are we likely to continue with an investment even if it would be rational to give it up?
Zero Risk Biasβ
Why do we seek certainty in risky situations?