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Our decisions are affected by our inherent cognitive biases from "summary" of Predictably Rational? by Richard B. McKenzie
Richard B. McKenzie delves into the intriguing world of decision-making in his book 'Predictably Rational?' He explores the idea that our choices are often influenced by cognitive biases that are inherent in human psychology. These biases can lead us astray, causing us to make decisions that may not always be in our best interest. One such cognitive bias is the confirmation bias, where individuals seek out information that confirms their pre-existing beliefs while ignoring evidence that contradicts them. This can lead to a skewed perception of reality, as people tend to dismiss information that challenges their worldview. Another common bias is the anchoring effect, where individuals rely too heavily on the first piece of information they receive when making decisions. This initial anchor can heavily influence subsequent choices, even if it is irrelevant or inaccurate. The availability heuristic is yet another cognitive bias that impacts decision-making. This bias causes individuals to overestimate the likelihood of events based on how easily they can recall examples from memory. For example, people may fear flying on airplanes despite statistics showing it is safer than driving because plane crashes receive more media coverage. Moreover, the overconfidence bias can lead individuals to overestimate their own abilities, knowledge, or judgment. This can result in poor decision-making, as people may take unnecessary risks or fail to adequately consider alternative perspectives.- Individuals can become more aware of how their decision-making processes may be influenced. Recognizing these biases can help people make more informed choices and avoid common pitfalls that may hinder their ability to make rational decisions. Ultimately, being cognizant of our inherent cognitive biases can empower us to make better decisions in both our personal and professional lives.
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