Cognitive biases can affect decisionmaking from "summary" of The Psychology Book by DK
Cognitive biases refer to the systematic errors in thinking that can affect our decision-making process. These biases are a result of our brain's attempt to simplify information processing and make quick judgments. However, these shortcuts can sometimes lead us astray, causing us to make decisions that are not necessarily rational or logical. One common cognitive bias is confirmation bias, where we tend to seek out information that confirms our existing beliefs and ignore evidence that contradicts them. This can prevent us from considering all sides of an issue and making a well-informed decision. Another cognitive bias is the anchoring bias, where we rely too heavily on the first piece of information we receive when...
Similar Posts
Selfattribution bias makes investors attribute successes to their own skill rather than luck
Self-attribution bias is a common psychological quirk that affects how investors perceive their own successes. When investors e...
Memory is the residue of thought
When we think, we are using our working memory. This is where conscious thoughts occur, where we reason, solve problems, and ma...
Obsession with making money at all costs
The quest for wealth has become an all-consuming obsession in modern society. People are willing to go to great lengths, often ...
Our attitudes towards money are shaped by our personal experiences and upbringing
Our attitudes towards money are deeply ingrained in us, molded by the experiences we have had and the lessons we have learned t...
Building wealth requires disciplined habits
To build wealth over time, you must develop disciplined habits that lead to financial success. This means consistently making s...
Critical thinking involves weighing evidence carefully
When engaging in critical thinking, it is essential to carefully consider the evidence presented before drawing any conclusions...
Common sense often guides human reasoning
Human beings are naturally inclined to rely on common sense when it comes to making decisions and forming beliefs. This innate ...
Behavioral economics challenges traditional economic theories
Traditional economic theories have long been based on the assumption of rational decision-making by individuals. According to t...
Superforecasting involves making accurate predictions based on careful analysis
Superforecasting is not about having a crystal ball or relying on gut feelings. It's about making accurate predictions through ...
Avoid the groupthink phenomenon
When we are part of a group, we often feel pressure to conform to the group's beliefs and opinions. This phenomenon, known as g...