A glossary of various biases that we may have. Picked it from a recent workshop and sharing it here as I found it super useful. Occasionally, it helps to identify biases that you and others have practiced.
| Anchoring | Tendency to rely too heavily on one piece of information as a reference point when making a decision |
| Cognitive Dissonance | Mental discomfort felt by one simultaneously holding two contradictory beliefs |
| Confirming | Only acknowledging information that confirms one’s opinions or beliefs. Discounting or ignoring opinions that are negative |
| Familiarity | Preference to do things in what is familiar instead of what’s new |
| Framing | Presenting information in such a way to achieve a desired outcome. Tending to reach conclusions on the way the scenario is presented, or framed. Gain Framing vs loss framing. |
| Herd | Tendency to follow a course of action because others also are doing it |
| Hindsight | Tendency to view events as having been more predictable, and thus actions more correct or incorrect, than was apparent as the situation was unfolding (example: Financial crisis of 2008, election of 45th) |
| Home | Tendency to believe in things closer to home and discounting what happens farther away |
| Recency | Using only recent data to make decisions |
| Self attribution | Take credit for good outcomes and pass on blame for bad outcomes |
| Status quo | Tendency to stay with current things, faced with an array of options, select the one that keeps conditions the same. |
| Over confidence | Overestimate or exaggerate one’s ability to perform a given task. |
| Substitution | Process of subconsciously replacing, or substituting, a complex scenario or judgment with a more straightforward scenario that is easier to comprehend |
| Illusion of Control | Believe in the power that they can always control outcomes, when they cannot. Especially investments |
| Loss Aversion | Cling to something even if the loss is apparent. Take additional risk to not lose more. |
