Lecture 13 Cognitive Biases

Question 1

Anchoring

Answer 1

the anchor is what you compare to when evaluating, comparing your gains to CBUMS. or compare your life to people in third world countries.

Question 2

Contrast Effect / Context Effect

Answer 2

If men look at attractive women, their wife becomes less attractive, if you focus at two things at a time you focous on their differences.

Question 3

Distinction bias

Answer 3

Things appear more different when viewed simultaneously.

Question 4

Bandwagon effect and Herd instinct

Answer 4

The tendency to believe in what your social group thinks and how they think, decreasing your critical faculties. Herd instinct doing what everyone else is doing to avoid conflict.

Question 5

Hostile Media Effect

Answer 5

When you watch the news you think its bias against your beliefs.

Question 6

Endowment Effect

Answer 6

The idea that owning something will intern cause you to return that item is less likely.

Question 7

Loss Aversion

Answer 7

Pay more attention and effort into losing something to rather than preserving value.

Question 8

temporal discounting

Answer 8

Using time to sell a discount in to the future. more likely to accept reward now if the future is uncertain and chaotic.

Question 9

Moral Credential Effect

Answer 9

You allow yourself to do bad things because of all the good things you’ve done. People who write essays that make them feel good about themselves, are more likely to act bad.

Question 10

Self-licensing

Answer 10

Doing good things is what you have to do to stay validated with yourself, (to stay good).

Question 11

Moral- licensing

Answer 11

the tendency to do one good thing and then think you are a good person and do not need to continue to do better.

Question 12

Risk Compensation

Answer 12

You’re more likely to be risky in a risky environment, when you have something that reduces your risk. Like seat belts, bike helmets, eating milkshake after run. Rate of concussion is actually higher with football helmets.

Question 13

Confirmation Bias

Answer 13

You accept, seek out, and remember things that support your views. Also interpreting things that support their views.

Question 14

Negativity Bias

Answer 14

People tend to focus on negative information. (Standing next to a microwave is bad for you.)
More likely to remember dangerous words.

Question 15

Omission Bias

Answer 15

Thinking killing someone is far more worse than not doing something that causes the same harm.

Question 16

Outcome Bias

Answer 16

Judging how bad on act is based on the outcome, like some one being killed or surviving based on your irresponsible behavior.

Question 17

Planning Fallacy

Answer 17

People tend to underestimate how long it will take for us to complete tasks. Which makes us overbook things.

Question 18

Wishful Thinking

Answer 18

Believing in something because you want it to be true.

Question 19

Availability Heuristic

Answer 19

People tend to remember more negative information. If you constantly watch the news you are going to tend to view the world in a more negative manner.

Question 20

Base Rate Neglect

Answer 20

The tendency that thinking an outcome has a high percentage does not always mean a perceived high outcome. (way more people in the false positive)

Question 21

Belief Bias

Answer 21

If rain is wet then my roof is wet. The tendency to stick with personal beliefs that make you make assumption on other things.

Question 22

Conjunction Fallacy

Answer 22

To think that the conjunction of two things is more common then those two things being separate.

Question 23

Gambling Fallacy

Answer 23

Thinking a repeating pattern will break.

Question 24

Hot hand fallacy

Answer 24

Thinking a repeating pattern will continue.

Question 25

Pareidolia

Answer 25

Different ways for us to see patterns where none exist. Seeing that face on mars even though there is no face.

Question 26

Primacy and Recency Effects

Answer 26

We tend to remember things at the beginning and the end of an event.

Question 27

Just World Phenomenon

Answer 27

The more you believe in karma (or just world), the more likely you are to find personal causes for victims from bad things.

Question 28

Actor-Observer Bias

Answer 28

The tendency to explain the behaviour of other in terms of stable traits, immediately getting at someone for cutting and not getting at yourself for cutting someone off. Call someone success lucky and yours is from hard work.