Flashcards in Cognitive Biases Deck (170)
The tendency to rely too heavily, or "anchor", on one trait or piece of information when making decisions (usually the first piece of information that we acquire on that subject
a person looking to buy a used car - they may focus excessively on the odometer reading and the year of the car, and use those criteria as a basis for evaluating the value of the car, rather than considering how well the engine or the transmission is maintained.
MSRP for a new Lexus is $39,465. You negotiated a price for $35,250. You feel terrific. You believe you got a great deal.
What’s an acceptable curfew for a 16-year-old? If you had to be home by 11 p.m. on a weekend evening, a 1 a.m. curfew won’t feel right, even if “all the kids are doing it.”
If a husband is doing ten times more housework than his dad ever did, he may feel entitled to a “best husband of the year” award from his wife. Imagine his surprise then, when his wife berates him for not doing enough.
The tendency of our perception to be affected by our recurring thoughts
The tendency to excessively depend on automated systems which can lead to erroneous automated information overriding correct decisions.
The tendency to overestimate the likelihood of events with greater "availability" in memory, which can be influenced by how recent the memories are or how unusual or emotionally charged they may be
A self-reinforcing process in which a collective belief gains more and more plausibility through its increasing repetition in public discourse (or "repeat something long enough and it will become true")
When people react to disconfirming evidence by strengthening their beliefs.
The tendency to do (or believe) things because many other people do (or believe) the same
The tendency to ignore base rate information (generic, general information) and focus on specific information (information only pertaining to a certain case)
base rate fallacy
An effect where someone's evaluation of the logical strength of an argument is biased by the believability of the conclusion
The tendency to see oneself as less biased than other people, or to be able to identify more cognitive biases in others than in oneself
The tendency for people to appear more attractive in a group than in isolation
The tendency to remember one's choices as better than they actually were
The tendency to overestimate the importance of small runs, streaks, or clusters in large samples of random data (that is, seeing phantom patterns)
The tendency to search for, interpret, focus on and remember information in a way that confirms one's preconceptions
The tendency to test hypotheses exclusively through direct testing, instead of testing possible alternative hypotheses
The tendency to assume that specific conditions are more probable than general ones
A certain state of mind wherein high values and high likelihoods are overestimated while low values and low likelihoods are underestimated
The tendency to revise one's belief insufficiently when presented with new evidence
The enhancement or reduction of a certain perception's stimuli when compared with a recently observed, contrasting object
When better-informed people find it extremely difficult to think about problems from the perspective of lesser-informed people
curse of knowledge
Preferences for either option A or B changes in favor of option B when option C is presented, which is similar to option B but in no way better.
The tendency to spend more money when it is denominated in small amounts (e.g. coins) rather than large amounts (e.g. bills).
The tendency to sell an asset that has accumulated in value and resist selling an asset that has declined in value.
The tendency to view two options as more dissimilar when evaluating them simultaneously than when evaluating them separately
The tendency for unskilled individuals to overestimate their own ability and the tendency for experts to underestimate their own ability