W5 - Cognitive biases

Question 1

thinking that I’ve gotten bad luck so after bad luck it must be time for good luck

Answer 1

Gambler’s fallacy

Question 2

A situation in which the incentives of agents and principals are not aligned and agents act in part or in whole on their own incentives.

Answer 2

Agent cost

Question 3

Tendency to accept information that confirms initial hypothesis regardless of the quality of the data or of the subjectivity of the view.

Answer 3

Confirmation bias

Question 4

People of different opinions exposed to the same information push their view even more to their respective extreme.

Answer 4

Attitude polarisation

Question 5

Beliefs continue even after evidence shows they are ill-founded

Answer 5

Belief Perseverance

Tackle with counterfactual thinking –> asking the odds of not getting what they want

Question 6

Tendency to underestimate how long something will take, its risk and its associated costs and overestimate benefits being pessimistic of estimating tasks of others.

Answer 6

Planning fallacy

Question 7

Tendency to be more risk seeking when when gambling with money that is not yours.

Answer 7

House money effect

Question 8

Tendency to internalise success (my achievement) and externalise failure (blame it on others)

Answer 8

Self-serving bias

Question 9

If you know the outcome of an event, it is difficult to empathise with another’s reasoning to that event.

Answer 9

The curse of knowledge

Question 10

Thinking outcomes are more improbable before they occur, and overestimate the likelihood of their occurrence after they occur

Answer 10

Hindsight bias