Cognitive Biases and Heuristics Flashcards
Status-quo bias
Also denoted as the power of inertia, conveys our tendency to resist change and go along with the path of least
resistance (i.e. deciding not to act or sticking to a decision that was already made), spite of changing preferences.
Positioning heuristic
Denotes our tendency to be influenced by the location, arrangement, scale or assemblage of the alternatives.
Regret aversion bias
Conveys our tendency to become more cautious making decisions in order to reduce the possibility of regret.
Availability heuristic
Reflects our tendency to judge the probability of occurrence of an event based on the ease at which it can be recalled. When the likelihood of an event is hard to estimate, people tend to use the readiness with which information associated is brought to mind, as an indicator of frequency.
Confirmation bias
Refers to our tendency to merely seek information that matches our beliefs. This bias leads us to pay little attention to our reject information that contradicts our reasoning.
Decoy effect
Refers to our tendency to increase the preference for an option when an inferior alternative (decoy) is added to the original set.
Peak-end rule
Suggest that our memory of past experiences is shaped by two moments: their most intense (i.e. Peak) and the last episode.
Placebo effect
Denotes that the provision of an element that has no effect upon the individual’s condition, or his environment, is able to improve her mental or physical response due to its perceived effect.
Salience bias
Refers to the fact that individuals are more likely to focus on items or information that are more prominent and ignore those that are less so.
Reciprocity bias
Conveys people’s tendency to return with an equivalent action the actions that they receive from others.
Commitment bias
Refers to our tendency to “be true to our word” and keep commitments we have made, even if there is evidence that is not paying off.
Spotlight effect
Conveys our tendency to overestimate the extent to which our actions and decisions are noticeable to others.
Herd instinct bias
Refers to our tendency to replicate other’s actions, even if this implies overriding own beliefs.
Scarcity bias
Denotes our tendency to attribute more value to an object because we believe it will be more difficult to acquire in the future.
Affect heuristic
Denotes that, given that our first response to a stimulus is affective, they have a strong influence our decision. This
automatic reaction plays an important role on the decision: it occurs prior to conscious reasoning and carries more weight in judgment. People base their judgments on what they feel about a stimulus: if the stimulus activates positive feelings, it serves as an incentive and automatically incites actions to prolong those feelings. If the stimulus triggers negative responses, it is perceived a level of risk that instigates actions to mitigate it.