Confirmation bias may lead to selective attention from "summary" of Advances in Behavioral Finance by Richard H. Thaler
Confirmation bias, a common phenomenon in decision-making, can have a significant impact on how individuals process information. When people hold preconceived beliefs or opinions, they tend to seek out information that confirms these beliefs while ignoring or dismissing contradictory evidence. This tendency leads to a distortion in the way information is perceived and evaluated, ultimately influencing decision outcomes. One way confirmation bias manifests is through selective attention, where individuals focus on information that aligns with their existing beliefs while neglecting information that challenges them. This selective attention can result in a limited and biased view of reality, as individuals may only consider a narrow range of information that supports their initial assumptions. As a result, decision-makers may overlook potentially important information that could lead to more informed and balanced decisions. In the con...
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