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Cognitive Biases Cognitive Biases and Heuristics Are Mental Shortcuts That Aid in Processing of Information, but Can Lead to Suboptimal Decisions

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Cognitive Biases Cognitive Biases and Heuristics Are Mental Shortcuts That Aid in Processing of Information, but Can Lead to Suboptimal Decisions Cognitive Biases Cognitive biases and heuristics are mental shortcuts that aid in processing of information, but can lead to suboptimal decisions. List of Biases and Heuristics Bias/Effect Description Business Problem Category Advice Ambiguity bias Preference for known Need to We favor options that appear simple risks over unknown risks Act Fast or that have more complete information over more complex, ambiguous options. Anchoring Overreliance on initial Think of each Too Much We notice when something has information piece of Information changed. information as independently as possible, then review them collectively Anecdotal fallacy Overvaluing personal Not We find stories and patterns even in experience when Enough sparse data. compared to data Meaning Anthropomorphism Mistakenly imbuing things Not We find stories and patterns even in with human traits Enough sparse data. Meaning Appeal to novelty Belief that something new Need to In order to stay focused, we favor the is inherently superior to Act Fast immediate, relatable thing in front of status quo us over the delayed and distant. Appeal to probability Mistaking probability for Even the best Not We simplify probabilities and fallacy certainty laid plans can Enough numbers to make them easier to think fail, even when Meaning about. they are more likely than not to succeed Argument from Mistaken belief that a Some Not We fill in characteristics from fallacy fallacious argument arguments are Enough stereotypes, generalities, and prior implies that the better than Meaning histories whenever there are new conclusion is incorrect others, so specific instances or gaps in process the information. conclusion separately from the argument Asperger's High functioning autism Syndrome spectrum disorder that causes increased attention to detail, increased recognition of patterns, and high intensity, but reduced empathic responses and communication skills Attentional Bias Perception altered by Too Much We notice things that are already ruminating thoughts Information primed in memory or repeated often Attribute Substitution Application of Don't unnecessary conditionals unnecessarily to data constrain thinking with assumptions, make sure all conditions are valid Authority bias Overestimation of ability Not We fill in characteristics from of authority figures Enough stereotypes, generalities, and prior Meaning histories whenever there are new specific instances or gaps in information. Automation bias Propensity to favor Not We fill in characteristics from information from Enough stereotypes, generalities, and prior technology even when Meaning histories whenever there are new presented with specific instances or gaps in contradictory information information. Availability Heuristic Overvaluing information Too Much We notice things that are already that is readily available Information primed in memory or repeated often Backfire effect Rejection of evidence Need to In order to get anything done, we’re contradicting beliefs and Act Fast motivated to complete things that strengthening of belief we’ve already invested time and energy in. Base rate fallacy Probability is ignored in Too Much We notice things that are already favor contextual Information primed in memory or repeated often information Belief bias Argument accuracy and Need to We favor options that appear simple strength are judged by Act Fast or that have more complete their support for personal information over more complex, beliefs, not argument ambiguous options. quality Bias blind spot Recognition of other's Too Much We notice flaws in others more easily biases while ignoring our Information than flaws in ourselves. own Bizarreness effect Out of place material is Too Much Bizarre/funny/visually- remembered better Information striking/anthropomorphic things stick out more than non-bizarre/unfunny things. Choice-supportive Ex post justification of Too Much We are drawn to details that confirm bias choices Information our own existing beliefs. Clustering illusion Tendency to see patterns Not We find stories and patterns even in where none exist Enough sparse data. Meaning Confabulation Fabrication or Human Not We find stories and patterns even in misperception of memory is Enough sparse data. memories without intent fallible and Meaning to deceive memories can unintentionally be incorrect, so rely as much on objective records as possible Confirmation bias Preference for Too Much We are drawn to details that confirm information that confirms Information our own existing beliefs. existing beliefs Congruence bias Overreliance on direct Too Much We are drawn to details that confirm testing compared to Information our own existing beliefs. indirect testing Conjunction fallacy Misperception of Need to We favor options that appear simple probabilities with multiple Act Fast or that have more complete conditions information over more complex, ambiguous options. Conservatism Beliefs are insufficiently Make sure to Too Much We notice when something has revised with new continually Information changed. information update beliefs as information (see Bayes Rule) Context effect Forgetting increases in Too Much We notice things that are already the absence of cues Information primed in memory or repeated often Continued influence Information later proven Too Much We are drawn to details that confirm effect false still impacts Information our own existing beliefs. perception Conversation Individuals misevaluate Be mindful Awareness the time spent talking and when listening in a conversing to conversation properly listen Curse of knowledge Mistaken assumption that Not We think we know what others are others possess the Enough thinking. information you do Meaning Data Effect Tendency to value Remember to statistics independent of properly relevance and accuracy contextualize data and make sure it's relevant Declinism Predisposition towards Not We project our current mindset and pessimism for the future Enough assumptions onto the past and future. and optimism for the past Meaning Decoy effect Preferences change Need to In order to avoid mistakes, we’re when another item is Act Fast motivated to preserve our autonomy added that is and status in a group, and to avoid asymmetrically irreversible decisions. dominated Defensive attribution Assignment of Need to In order to act, we need to be hypothesis responsibility to people Act Fast confident in our ability to make an who experience a impact and to feel like what we do is negative event important. Denomination effect Large currency Not We simplify probabilities and denominations lead to Enough numbers to make them easier to think greater spending than Meaning about. equivalent small currency denominations Distinction bias Overvaluing differences Too Much We notice when something has when presented with Information changed. simultaneous choices Dunning-Kruger Low skill people It's difficult to Need to In order to act, we need to be effect overestimate their skill judge the skills Act Fast confident in our ability to make an and high skill people of yourself and impact and to feel like what we do is underestimate their skill others, so important. focus on objective metrics of success Duration neglect Judgement of negative What We reduce events and lists to their experiences doesn't Should We key elements. depend on duration Remember Effort justification Overvaluing outcomes Need to In order to act, we need to be due to effort put into them Act Fast confident in our ability to make an impact and to feel like what we do is important. Egocentric bias Tendency to overvalue Need to In order to act, we need to be self Act Fast confident in our ability to make an impact and to feel like what we do is important. Empathy gap Understanding is state Too Much We notice things that are already dependent (i.e. difficult to Information primed in memory or repeated often see another perspective) Endowment effect Overvaluing items due to Need to In order to get anything done, we’re personal ownership Act Fast motivated to complete things that we’ve already invested time and energy in. Essentialism Belief that certain Not We fill in characteristics from attributes are necessary Enough stereotypes, generalities, and prior to a group's identity and Meaning histories whenever there are new function specific instances or gaps in information. Ethics Simplicity Preference towards simple ethics and intuition over logic Extrinsic incentive Overvaluation of extrinsic Not We think we know what others are error incentives as cause of Enough thinking. behavior Meaning Fading affect bias Negative emotions fade What We discard specifics to form faster than positive Should We generalities. emotions Remember False consensus Tendency to Need to In order to act, we need to be effect overestimate the number Act Fast confident in our ability to make an of people that agree with impact and to feel like what we do is us important. False memory Entirely fabricated What We edit and reinforce some memories can exist Should We memories after the fact. Remember Forer effect Reporting of vague and Need to In order to act, we need to be general information as Act Fast confident in our ability to make an highly accurate when told impact and to feel like what we do is that it was customized to important. them Framing effect Presentation of Alter the way Too Much We notice when something has information alters the information is Information changed. perception of it framed to match the desired outcome Frequency illusion Learning something
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