Cognitive Biases Flashcards
The tendency to rely too heavily, or “anchor”, on one trait or piece of information when making decisions (usually the first piece of information that we acquire on that subject
anchoring effect
a person looking to buy a used car - they may focus excessively on the odometer reading and the year of the car, and use those criteria as a basis for evaluating the value of the car, rather than considering how well the engine or the transmission is maintained.
anchoring effect
MSRP for a new Lexus is $39,465. You negotiated a price for $35,250. You feel terrific. You believe you got a great deal.
anchoring effect
What’s an acceptable curfew for a 16-year-old? If you had to be home by 11 p.m. on a weekend evening, a 1 a.m. curfew won’t feel right, even if “all the kids are doing it.”
anchoring effect
If a husband is doing ten times more housework than his dad ever did, he may feel entitled to a “best husband of the year” award from his wife. Imagine his surprise then, when his wife berates him for not doing enough.
anchoring effect
The tendency of our perception to be affected by our recurring thoughts
attentional bias
The tendency to excessively depend on automated systems which can lead to erroneous automated information overriding correct decisions.
automation bias
The tendency to overestimate the likelihood of events with greater “availability” in memory, which can be influenced by how recent the memories are or how unusual or emotionally charged they may be
availability heuristic
A self-reinforcing process in which a collective belief gains more and more plausibility through its increasing repetition in public discourse (or “repeat something long enough and it will become true”)
availability cascade
When people react to disconfirming evidence by strengthening their beliefs.
backfire effect
The tendency to do (or believe) things because many other people do (or believe) the same
bandwagon effect
The tendency to ignore base rate information (generic, general information) and focus on specific information (information only pertaining to a certain case)
base rate fallacy
An effect where someone’s evaluation of the logical strength of an argument is biased by the believability of the conclusion
belief bias
The tendency to see oneself as less biased than other people, or to be able to identify more cognitive biases in others than in oneself
bias blindspot
The tendency for people to appear more attractive in a group than in isolation
cheerleader effect
The tendency to remember one’s choices as better than they actually were
choice-supportive bias
The tendency to overestimate the importance of small runs, streaks, or clusters in large samples of random data (that is, seeing phantom patterns)
clustering illusion
The tendency to search for, interpret, focus on and remember information in a way that confirms one’s preconceptions
confirmation bias
The tendency to test hypotheses exclusively through direct testing, instead of testing possible alternative hypotheses
congruence bias
The tendency to assume that specific conditions are more probable than general ones
conjunctive fallacy
A certain state of mind wherein high values and high likelihoods are overestimated while low values and low likelihoods are underestimated
regressive bias
The tendency to revise one’s belief insufficiently when presented with new evidence
Conservatism bias
The enhancement or reduction of a certain perception’s stimuli when compared with a recently observed, contrasting object
contrast effect
When better-informed people find it extremely difficult to think about problems from the perspective of lesser-informed people
curse of knowledge
Preferences for either option A or B changes in favor of option B when option C is presented, which is similar to option B but in no way better.
decoy effect
The tendency to spend more money when it is denominated in small amounts (e.g. coins) rather than large amounts (e.g. bills).
denomination effect
The tendency to sell an asset that has accumulated in value and resist selling an asset that has declined in value.
disposition effect
The tendency to view two options as more dissimilar when evaluating them simultaneously than when evaluating them separately
distinction bias
The tendency for unskilled individuals to overestimate their own ability and the tendency for experts to underestimate their own ability
Dunning-Kruger effect
The neglect of the duration of an episode in determining its value
duration neglect
The tendency to underestimate the influence or strength of feelings, in either oneself or others.
empathy gap
when one is angry, it is difficult to understand what it is like for one to be happy, and vice versa; when one is blindly in love with someone, it is difficult to understand what it is like for one not to be, (or to imagine the possibility of not being blindly in love in the future).
empathy gap
The tendency for people to demand much more to give up an object than they would be willing to pay to acquire it
endowment effect
Categorizing people and things according to their essential nature, in spite of variations
essentialism
Based on the estimates, real-world evidence turns out to be less extreme than our expectations (conditionally inverse of the conservatism bias)
exaggerated expectation
The tendency for experimenters to believe, certify, and publish data that agree with their expectations for the outcome of an experiment, and to disbelieve, discard, or downgrade the corresponding weightings for data that appear to conflict with those expectations
expectation bias
The tendency to place too much importance on one aspect of an event
focusing effect
The observation that individuals will give high accuracy ratings to descriptions of their personality that supposedly are tailored specifically for them, but are in fact vague and general enough to apply to a wide range of people. This effect can provide a partial explanation for the widespread acceptance of some beliefs and practices, such as astrology, fortune telling, graphology, and some types of personality tests.
forer effect
Drawing different conclusions from the same information, depending on how that information is presented
framing effect
The illusion in which a word, a name, or other thing that has recently come to one’s attention suddenly seems to appear with improbable frequency shortly afterwards
frequency illusion
Limits a person to using an object only in the way it is traditionally used.
functional fixedness
Based on a specific level of task difficulty, the confidence in judgments is too conservative and not extreme enough
hard-easy effect
The “hot-hand fallacy” (also known as the “hot hand phenomenon” or “hot hand”) is the fallacious belief that a person who has experienced success has a greater chance of further success in additional attempts.
hot-hand fallacy
Discounting is the tendency for people to have a stronger preference for more immediate payoffs relative to later payoffs. Hyperbolic discounting leads to choices that are inconsistent over time – people make choices today that their future selves would prefer not to have made, despite using the same reasoning.
hyperbolic discounting
The tendency to respond more strongly to a single identified person at risk than to a large group of people at risk
identifiable victim effect
The tendency for people to place a disproportionately high value on objects that they partially assembled themselves, such as furniture from IKEA, regardless of the quality of the end result.
IKEA effect
The tendency to overestimate one’s degree of influence over other external events
illusion of control
Belief that furtherly acquired information generates additional relevant data for predictions, even when it evidently does not
illusion of vailidity
The tendency to overestimate the length or the intensity of the impact of future feeling states
impact bias
The tendency to seek information even when it cannot affect action.
information bias
The tendency to under-expect variation in small samples
Insensitivity to sample size
The phenomenon where people justify increased investment in a decision, based on the cumulative prior investment, despite new evidence suggesting that the decision was probably wrong.
sunk cost fallacy
The tendency to prefer a smaller set to a larger set judged separately, but not jointly
less is better effect
seven ounces of ice cream overflowing in a small cup was preferred over eight ounces of ice cream in a much larger cup
less is better effect
a dinnerware set with 24 intact pieces was preferred over a dinnerware set of 31 pieces with a few broken pieces
less is better effect
“the disutility of giving up an object is greater than the utility associated with acquiring it”
loss aversion
The tendency to express undue liking for things merely because of familiarity with them.
mere exposure effect
The tendency to concentrate on the nominal value (face value) of money rather than its value in terms of purchasing power
money illusion
The tendency of a track record of non-prejudice to increase subsequent prejudice.
moral credential effect
individuals who had the opportunity to recruit a woman or African American in one setting were more likely to say later, in a different setting, that a job would be better suited for a man or a Caucasian.
moral credential effect
The tendency of people, when evaluating the causes of the behaviors of a person they dislike, to attribute their positive behaviors to the environment and their negative behaviors to the person’s inherent nature.
negativity effect
Psychological phenomenon by which humans have a greater recall of unpleasant memories compared with positive memories
negativity bias
The tendency to completely disregard probability when making a decision under uncertainty
neglect of probability
The refusal to plan for, or react to, a disaster which has never happened before.
normalcy bias
Aversion to contact with or use of products, research, standards, or knowledge developed outside a group
not invented here
When a researcher expects a given result and therefore unconsciously manipulates an experiment or misinterprets data in order to find it
observer-expectancy effect
The tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions)
omission bias
The tendency to be over-optimistic, overestimating favorable and pleasing outcomes
optimism bias