Cognitive Biases
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Rational Wishful Thinking
Rational self-deception Eli Spiegelman a Jan 31, 2018 a CEREN, EA 7477, Burgundy School of Business - Université Bourgogne Franche-Comté, 29 rue Sambin, Dijon 21000, France. [email protected] Keywords: Wishful thinking; self-deception; beliefs; choice theory; experiment; regret theory; ambiguity JEL D8, D9 Funding This research benefitted from funding from LESSAC, Burgundy School of Business. Abstract This note presents a model of wishful thinking as manipulation of prior beliefs, and a novel experimental test. The theoretical context is a three-period model, in which the agent is faced with a state-contingent optimal action, in which one state yields a higher payoff. In period 0 she observes the objective prior probability that each state will occur, but may alter her beliefs about these probabilities (self-deceive). The beliefs she chooses in period 0 determine her action in period 1 as a standard maximization procedure. In period 2, a signal yields information about the state of the world. A key assumption is that this signal may not be perfectly revealing. It is shown that the objective prior is optimal if and only if the signal in period 2 is perfectly revealing. Predictions of the theory are tested in a bet-choice experiment. I then present an experimental test designed to investigate the model’s predictions. Subjects choose to play a bet or pass it up for another, and the experimental control varies whether learn about the second bet upon taking the first. The results of the experiment are also compared to the literature on regret theory and ambiguity aversion. -
A Task-Based Taxonomy of Cognitive Biases for Information Visualization
A Task-based Taxonomy of Cognitive Biases for Information Visualization Evanthia Dimara, Steven Franconeri, Catherine Plaisant, Anastasia Bezerianos, and Pierre Dragicevic Three kinds of limitations The Computer The Display 2 Three kinds of limitations The Computer The Display The Human 3 Three kinds of limitations: humans • Human vision ️ has limitations • Human reasoning 易 has limitations The Human 4 ️Perceptual bias Magnitude estimation 5 ️Perceptual bias Magnitude estimation Color perception 6 易 Cognitive bias Behaviors when humans consistently behave irrationally Pohl’s criteria distilled: • Are predictable and consistent • People are unaware they’re doing them • Are not misunderstandings 7 Ambiguity effect, Anchoring or focalism, Anthropocentric thinking, Anthropomorphism or personification, Attentional bias, Attribute substitution, Automation bias, Availability heuristic, Availability cascade, Backfire effect, Bandwagon effect, Base rate fallacy or Base rate neglect, Belief bias, Ben Franklin effect, Berkson's paradox, Bias blind spot, Choice-supportive bias, Clustering illusion, Compassion fade, Confirmation bias, Congruence bias, Conjunction fallacy, Conservatism (belief revision), Continued influence effect, Contrast effect, Courtesy bias, Curse of knowledge, Declinism, Decoy effect, Default effect, Denomination effect, Disposition effect, Distinction bias, Dread aversion, Dunning–Kruger effect, Duration neglect, Empathy gap, End-of-history illusion, Endowment effect, Exaggerated expectation, Experimenter's or expectation bias, -
The Art of Thinking Clearly
For Sabine The Art of Thinking Clearly Rolf Dobelli www.sceptrebooks.co.uk First published in Great Britain in 2013 by Sceptre An imprint of Hodder & Stoughton An Hachette UK company 1 Copyright © Rolf Dobelli 2013 The right of Rolf Dobelli to be identified as the Author of the Work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means without the prior written permission of the publisher, nor be otherwise circulated in any form of binding or cover other than that in which it is published and without a similar condition being imposed on the subsequent purchaser. A CIP catalogue record for this title is available from the British Library. eBook ISBN 978 1 444 75955 6 Hardback ISBN 978 1 444 75954 9 Hodder & Stoughton Ltd 338 Euston Road London NW1 3BH www.sceptrebooks.co.uk CONTENTS Introduction 1 WHY YOU SHOULD VISIT CEMETERIES: Survivorship Bias 2 DOES HARVARD MAKE YOU SMARTER?: Swimmer’s Body Illusion 3 WHY YOU SEE SHAPES IN THE CLOUDS: Clustering Illusion 4 IF 50 MILLION PEOPLE SAY SOMETHING FOOLISH, IT IS STILL FOOLISH: Social Proof 5 WHY YOU SHOULD FORGET THE PAST: Sunk Cost Fallacy 6 DON’T ACCEPT FREE DRINKS: Reciprocity 7 BEWARE THE ‘SPECIAL CASE’: Confirmation Bias (Part 1) 8 MURDER YOUR DARLINGS: Confirmation Bias (Part 2) 9 DON’T BOW TO AUTHORITY: Authority Bias 10 LEAVE YOUR SUPERMODEL FRIENDS AT HOME: Contrast Effect 11 WHY WE PREFER A WRONG MAP TO NO -
Ms. Scott's A.P. Psychology Summer Assignment Due on the First Day Of
Ms. Scott’s A.P. Psychology Summer Assignment due on the first day of class, August 12th. If you have any questions, please email me at [email protected]. Summer Assignment 2019-2020 “You Are Not So Smart” by David McRaney ***Note: you can order this book through amazon.com and many other resources online, but you can also ask your local libraries to get it for you. If you have trouble attaining this book, email me asap because I can assist you with this. Humans like to think that we are rational and logical beings, however decades of research in cognitive psychology has proven otherwise. The book, “You are Not so Smart” by David McRaney explores the failings of memory, how we do things without having a clue why we are doing them, and the narratives we construct and tell ourselves to make us feel better about our choices and decisions. This book is a fabulous summer read for many reasons. First of all, we will be learning about every single concept presented in the book at some point this year. Second of all, each chapter is very short and engaging. Best of all, as you read, your mind will be flooded with memories and personal experiences that connect with the concepts and stories presented in the book. After reading the entire book, please complete these two assignments: 1. There are many very important AP Psychology concepts presented in the book. Complete the attached chart where you define each concept using your own words and provide a specific example from the book or in your own life. -
Cognitive Psychology
COGNITIVE PSYCHOLOGY PSYCH 126 Acknowledgements College of the Canyons would like to extend appreciation to the following people and organizations for allowing this textbook to be created: California Community Colleges Chancellor’s Office Chancellor Diane Van Hook Santa Clarita Community College District College of the Canyons Distance Learning Office In providing content for this textbook, the following professionals were invaluable: Mehgan Andrade, who was the major contributor and compiler of this work and Neil Walker, without whose help the book could not have been completed. Special Thank You to Trudi Radtke for editing, formatting, readability, and aesthetics. The contents of this textbook were developed under the Title V grant from the Department of Education (Award #P031S140092). However, those contents do not necessarily represent the policy of the Department of Education, and you should not assume endorsement by the Federal Government. Unless otherwise noted, the content in this textbook is licensed under CC BY 4.0 Table of Contents Psychology .................................................................................................................................................... 1 126 ................................................................................................................................................................ 1 Chapter 1 - History of Cognitive Psychology ............................................................................................. 7 Definition of Cognitive Psychology -
Communication Science to the Public
David M. Berube North Carolina State University ▪ HOW WE COMMUNICATE. In The Age of American Unreason, Jacoby posited that it trickled down from the top, fueled by faux-populist politicians striving to make themselves sound approachable rather than smart. (Jacoby, 2008). EX: The average length of a sound bite by a presidential candidate in 1968 was 42.3 seconds. Two decades later, it was 9.8 seconds. Today, it’s just a touch over seven seconds and well on its way to being supplanted by 140/280- character Twitter bursts. ▪ DATA FRAMING. ▪ When asked if they truly believe what scientists tell them, NEW ANTI- only 36 percent of respondents said yes. Just 12 percent expressed strong confidence in the press to accurately INTELLECTUALISM: report scientific findings. ▪ ROLE OF THE PUBLIC. A study by two Princeton University researchers, Martin TRENDS Gilens and Benjamin Page, released Fall 2014, tracked 1,800 U.S. policy changes between 1981 and 2002, and compared the outcome with the expressed preferences of median- income Americans, the affluent, business interests and powerful lobbies. They concluded that average citizens “have little or no independent influence” on policy in the U.S., while the rich and their hired mouthpieces routinely get their way. “The majority does not rule,” they wrote. ▪ Anti-intellectualism and suspicion (trends). ▪ Trump world – outsiders/insiders. ▪ Erasing/re-writing history – damnatio memoriae. ▪ False news. ▪ Infoxication (CC) and infobesity. ▪ Aggregators and managed reality. ▪ Affirmation and confirmation bias. ▪ Negotiating reality. ▪ New tribalism is mostly ideational not political. ▪ Unspoken – guns, birth control, sexual harassment, race… “The amount of technical information is doubling every two years. -
Anticipatory Anxiety and Wishful Thinking
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Engelmann, Jan; Lebreton, Maël; Schwardmann, Peter; van der Weele, Joël J.; Chang, Li-Ang Working Paper Anticipatory Anxiety and Wishful Thinking Tinbergen Institute Discussion Paper, No. TI 2019-042/I Provided in Cooperation with: Tinbergen Institute, Amsterdam and Rotterdam Suggested Citation: Engelmann, Jan; Lebreton, Maël; Schwardmann, Peter; van der Weele, Joël J.; Chang, Li-Ang (2019) : Anticipatory Anxiety and Wishful Thinking, Tinbergen Institute Discussion Paper, No. TI 2019-042/I, Tinbergen Institute, Amsterdam and Rotterdam This Version is available at: http://hdl.handle.net/10419/205332 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under -
When Do Employees Perceive Their Skills to Be Firm-Specific?
r Academy of Management Journal 2016, Vol. 59, No. 3, 766–790. http://dx.doi.org/10.5465/amj.2014.0286 MICRO-FOUNDATIONS OF FIRM-SPECIFIC HUMAN CAPITAL: WHEN DO EMPLOYEES PERCEIVE THEIR SKILLS TO BE FIRM-SPECIFIC? JOSEPH RAFFIEE University of Southern California RUSSELL COFF University of Wisconsin-Madison Drawing on human capital theory, strategy scholars have emphasized firm-specific human capital as a source of sustained competitive advantage. In this study, we begin to unpack the micro-foundations of firm-specific human capital by theoretically and empirically exploring when employees perceive their skills to be firm-specific. We first develop theoretical arguments and hypotheses based on the extant strategy literature, which implicitly assumes information efficiency and unbiased perceptions of firm- specificity. We then relax these assumptions and develop alternative hypotheses rooted in the cognitive psychology literature, which highlights biases in human judg- ment. We test our hypotheses using two data sources from Korea and the United States. Surprisingly, our results support the hypotheses based on cognitive bias—a stark contrast to expectations embedded within the strategy literature. Specifically, we find organizational commitment and, to some extent, tenure are negatively related to employee perceptions of the firm-specificity. We also find that employer-provided on- the-job training is unrelated to perceived firm-specificity. These results suggest that firm-specific human capital, as perceived by employees, may drive behavior in ways unanticipated by existing theory—for example, with respect to investments in skills or turnover decisions. This, in turn, may challenge the assumed relationship between firm-specific human capital and sustained competitive advantage. -
Infographic I.10
The Digital Health Revolution: Leaving No One Behind The global AI in healthcare market is growing fast, with an expected increase from $4.9 billion in 2020 to $45.2 billion by 2026. There are new solutions introduced every day that address all areas: from clinical care and diagnosis, to remote patient monitoring to EHR support, and beyond. But, AI is still relatively new to the industry, and it can be difficult to determine which solutions can actually make a difference in care delivery and business operations. 59 Jan 2021 % of Americans believe returning Jan-June 2019 to pre-coronavirus life poses a risk to health and well being. 11 41 % % ...expect it will take at least 6 The pandemic has greatly increased the 65 months before things get number of US adults reporting depression % back to normal (updated April and/or anxiety.5 2021).4 Up to of consumers now interested in telehealth going forward. $250B 76 57% of providers view telehealth more of current US healthcare spend % favorably than they did before COVID-19.7 could potentially be virtualized.6 The dramatic increase in of Medicare primary care visits the conducted through 90% $3.5T telehealth has shown longevity, with rates in annual U.S. health expenditures are for people with chronic and mental health conditions. since April 2020 0.1 43.5 leveling off % % Most of these can be prevented by simple around 30%.8 lifestyle changes and regular health screenings9 Feb. 2020 Apr. 2020 OCCAM’S RAZOR • CONJUNCTION FALLACY • DELMORE EFFECT • LAW OF TRIVIALITY • COGNITIVE FLUENCY • BELIEF BIAS • INFORMATION BIAS Digital health ecosystems are transforming• AMBIGUITY BIAS • STATUS medicineQUO BIAS • SOCIAL COMPARISONfrom BIASa rea• DECOYctive EFFECT • REACTANCEdiscipline, • REVERSE PSYCHOLOGY • SYSTEM JUSTIFICATION • BACKFIRE EFFECT • ENDOWMENT EFFECT • PROCESSING DIFFICULTY EFFECT • PSEUDOCERTAINTY EFFECT • DISPOSITION becoming precise, preventive,EFFECT • ZERO-RISK personalized, BIAS • UNIT BIAS • IKEA EFFECT and • LOSS AVERSION participatory. -
Wishful Thinking Final
A Framework for Understanding Wishful Thinking Daniel J. Hicks Science and Technology Policy Fellowships American Association for the Advancement of Science [email protected] Kevin C. Elliott Department of Philosophy Michigan State University [email protected] Abstract While the science and values literature has seen recurrent concerns about wishful thinking, there have been few efforts to characterize this phenomenon. Based on a review of varieties of wishful thinking involved in climate skepticism, we argue that instances of wishful thinking can be fruitfully characterized in terms of the mechanisms that generate them and the problems associated with them. We highlight the array of mechanisms associated with wishful thinking, as well as the fact that it can be evaluated both from epistemic and ethical perspectives. We argue that it is doubtful that a single unified definition of wishful thinking can be developed. Moreover, the concept of wishful thinking can problematically focus excessive attention on individual and epistemic problems in science, to the exclusion of social and ethical problems. A Framework for Understanding Wishful Thinking 1. Introduction In the 1970s, 1980s, and 1990s, a generation of feminist philosophers of science and epistemologists produced a series of critiques of the ideal of value-free science — the view that non-epistemic values have no legitimate role to play in evaluating scientific hypotheses. In the 1990s, a number of critics put forward countercharges, defenses of the value-free ideal. Wishful thinking and cognate concepts were prominent in these countercharges. As Elisabeth Lloyd noted at the time, "There are several interrelated pronouncements that materialize with mystifying but strict regularity whenever 'feminism' and 'science' are used in the same breath. -
Overview and History of Memory Research
M01_RADV4825_02_SE_CH01.QXD 10/16/10 10:41 AM Page 1 CHAPTER ONE OVERVIEW AND HISTORY OF MEMORY RESEARCH Memory is perhaps the most central aspect of human thought. Any question about human behavior, cognition, development, and nature requires an understanding of mem- ory. Our memory makes us who we are, and it is one of the most intimate parts of our- selves. This may be why when we get close to someone, when we want them to know who we are and we want to know who they are, there is a sharing of memories. Many feel that the study of human memory is the closest one can get to a systematic study of the human soul. The aim of this book is to provide you, the student, with a survey and guide to what is known about human memory. As with most courses, there are a number of facts and ideas to learn. However, as any good professor will tell you, the slow accu- mulation of facts is not the main point of course work. The primary aim is to provide you with a deeper understanding and appreciation of some aspect of the world—and, hopefully, yourself. I trust that the ideas presented in this book will be useful in your life after this course is completed. A SMATTERING OF DEFINITIONS Before diving into the subject matter, we need to establish some points. Specifically, we need to define how the terms memory and learning are used. The primary subject of this book is, of course, memory. So what is memory? Well, the problem, and the beauty, of this term is that it has many meanings. -
John Collins, President, Forensic Foundations Group
On Bias in Forensic Science National Commission on Forensic Science – May 12, 2014 56-year-old Vatsala Thakkar was a doctor in India but took a job as a convenience store cashier to help pay family expenses. She was stabbed to death outside her store trying to thwart a theft in November 2008. Bloody Footwear Impression Bloody Tire Impression What was the threat? 1. We failed to ask ourselves if this was a footwear impression. 2. The appearance of the impression combined with the investigator’s interpretation created prejudice. The accuracy of our analysis became threatened by our prejudice. Types of Cognitive Bias Available at: http://en.wikipedia.org/wiki/List_of_cognitive_biases | Accessed on April 14, 2014 Anchoring or focalism Hindsight bias Pseudocertainty effect Illusory superiority Levels-of-processing effect Attentional bias Hostile media effect Reactance Ingroup bias List-length effect Availability heuristic Hot-hand fallacy Reactive devaluation Just-world phenomenon Misinformation effect Availability cascade Hyperbolic discounting Recency illusion Moral luck Modality effect Backfire effect Identifiable victim effect Restraint bias Naive cynicism Mood-congruent memory bias Bandwagon effect Illusion of control Rhyme as reason effect Naïve realism Next-in-line effect Base rate fallacy or base rate neglect Illusion of validity Risk compensation / Peltzman effect Outgroup homogeneity bias Part-list cueing effect Belief bias Illusory correlation Selective perception Projection bias Peak-end rule Bias blind spot Impact bias Semmelweis