Categories
Thinking

Biases

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.

AnchoringTendency to rely too heavily on one piece of information as a reference point when making a decision
Cognitive DissonanceMental 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
FramingPresenting 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.
HerdTendency to follow a course of action because others also are doing it
HindsightTendency 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)
HomeTendency to believe in things closer to home and discounting what happens farther away
RecencyUsing only recent data to make decisions
Self attributionTake credit for good outcomes and pass on blame for bad outcomes
Status quoTendency 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.
SubstitutionProcess of subconsciously replacing, or substituting, a complex scenario or judgment with a more straightforward scenario that is easier to comprehend
Illusion of ControlBelieve in the power that they can always control outcomes, when they cannot. Especially investments
Loss AversionCling to something even if the loss is apparent. Take additional risk to not lose more.
Biases in thoughts and actions