15 Biases that distort our Decision Making in less than 2 minutes:
1. Confirmation Bias - We interpret new information as confirmation of our existing beliefs.
2. Availability Bias - We tend to rely on information that comes to our mind easily/the quickest.
3. Action Bias - We favor action over inaction. That's why we sell or buy prematurely.
4. Overconfidence - We overestimate our own knowledge and ability.
Paradoxically, we feel more knowledgeable the less we know.
5. Survivorship Bias - This is a sample bias that occurs when we assess only successful outcomes and disregard failures.
6. Self-Serving Bias - Our failures are situational, but our successes are our responsibility.
7. Low-Risk Bias - We tend to reduce small risks to zero, even if we can reduce more risk with another option.
8. Commitment Bias - We avoid decisions that contradict things we have said or done in the past.
9. Dunning-Kruger Effect - The less you know, the more confident you are. The more you know, the less confident you are.
10. Anchoring - Our judgment is heavily screwed by the first information we are given about something.
11. Hindsight Bias - In retrospect, events seem more predictable than they actually were.
12. Loss Aversion - Losses weigh twice as much as the equivalent gain.
Result -> we reject gambles with positive expected values.
13. Halo Effect - You either like or dislike everything about someone or something. Nothing in between.
14. Cause-Effect Fallacy - We love to see cause-effect relationships where none exist.
15. Recency Bias - We tend to put too much weight on recent events.
1. Confirmation Bias - We interpret new information as confirmation of our existing beliefs.
2. Availability Bias - We tend to rely on information that comes to our mind easily/the quickest.
3. Action Bias - We favor action over inaction. That's why we sell or buy prematurely.
4. Overconfidence - We overestimate our own knowledge and ability.
Paradoxically, we feel more knowledgeable the less we know.
5. Survivorship Bias - This is a sample bias that occurs when we assess only successful outcomes and disregard failures.
6. Self-Serving Bias - Our failures are situational, but our successes are our responsibility.
7. Low-Risk Bias - We tend to reduce small risks to zero, even if we can reduce more risk with another option.
8. Commitment Bias - We avoid decisions that contradict things we have said or done in the past.
9. Dunning-Kruger Effect - The less you know, the more confident you are. The more you know, the less confident you are.
10. Anchoring - Our judgment is heavily screwed by the first information we are given about something.
11. Hindsight Bias - In retrospect, events seem more predictable than they actually were.
12. Loss Aversion - Losses weigh twice as much as the equivalent gain.
Result -> we reject gambles with positive expected values.
13. Halo Effect - You either like or dislike everything about someone or something. Nothing in between.
14. Cause-Effect Fallacy - We love to see cause-effect relationships where none exist.
15. Recency Bias - We tend to put too much weight on recent events.
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