6 Cognitive Biases That Are Messing Up Your Decision Making
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Confirmation bias
People don't like to rethink their beliefs once they are formed.
We would rather ignore information that would challenge our ideas than engage with threatening new information. This is called "confirmation bias".
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Availability heuristic
Our brain likes to take shortcuts to solve a problem when normal methods are too slow to find a solution.
The problem with this approach is that frightening events are easier to recall than every-day events. We should be aware that alarmist news broadcasts don't help in an accurate sense of events.
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Anchoring
We have a tendency to stubbornly hold on to a number once we hear it and gauge all other numbers based on the initial number, even if the information is not that relevant.
For example, if customers are limited to 'four per customer' they are more likely to buy four, even if they did not initially intend to do so.
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Halo effect
Our brains like shortcuts and ideas that are consistent.
When someone makes a good first impression during an interview, their professional accomplishments are more likely to be viewed as similarly positive later.
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Sunk cost fallacy
The idea is once we are invested in something, we become less likely to abandon it, even if it is clear that it will ultimately fail.
We frequently lose more if we don't make the hard decision to cut our losses.
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Survivorship bias
We are more likely to listen to success stories than failures. The result is that we often over-estimate the likelihood of success in risky ventures.
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