Processing information - Deepstash

deepstash

Beta

deepstash

Beta

You make decisions quicker and based on less information than you think

Processing information

New information doesn't stack on top of old information until some mental threshold is reached for making a decision.

In reality, the first few pieces of information are weighted much more heavily than later information.

401 SAVES


EXPLORE MORE AROUND THESE TOPICS:

SIMILAR ARTICLES & IDEAS:

Anchoring Bias

A common occurrence of heuristics in which we use an initial starting point as an anchor that is then adjusted to yield a final estimate or value.

Example: estimating the value of an o...

Being Too Optimistic

People who are told that the risk of something bad happening is lower than they expected, tend to adjust their predictions to match the new information. But they ignore the new information when the risk is higher.

Part of this overly optimistic outlook stems from our natural tendency to believe that bad things happen to other people, but not to us. 

You Often Make Poor Comparisons

Sometimes we make poor comparisons or the compared items are not representative or equal.

We often decide based on rapid comparisons without really thinking about our options. In order to avoid bad decisions, relying on logic and thoughtful examination of the options can sometimes be more important than relying on your immediate "gut reaction."

The 37%

Mathematics dictates that you should take 37% of the time or options you have to simply look and after that, you should commit to the first option that is better than everything you’ve ...

The brain when we make decisions

The 2 systems of the brain that wok during decision making:

  • System 1 is automatic and quick (like "something feeling off").
  • System 2 is deliberate and slow (like an algorithm).

At times, these systems are at odds with each other, but research shows it's always best to trust an algorithm than your own gut.

Pros-and-cons lists are flawed

There are a few biases they don't address:

  • Narrow framing: the tendency to view an option as your only option.
  • Confirmation bias: our tendency to gather the information that supports our preferred option.
  • Short-term emotion: our tendency to have our judgment clouded when emotions run high.
  • Overconfidence: our tendency to make a decision with too much optimism about how things will play out.
Jumping into Conclusions
Jumping to conclusions is a common phenomenon, where people prematurely decide and finalize something, without having sufficient information or choosing not to consider it.
Jumping into Conclusions: Examples
  • Inference-observation confusion: An assumption made that may or may not be correct. Example: Concluding that a guy is rich, based on the car he drives.
  • Fortune-Telling: Assumption of knowing exactly what will happen in the future.
  • Mind Reading: Assuming based on how to have read someone's mind and concluded something which may not be true.
  • Extreme Extrapolation: Finding a minor clue and making something major out of it.
  • Overgeneralization: Copy-pasting a piece of knowledge over something that you think is related, but is not.
  • Labeling: Stereotyping a set of people based on their likes and dislikes.
Why We Jump to Conclusions

The reason people jump to conclusions is the fact that they find it easy.

Fact-checking and 100 percent accuracy on everything they see or observe consume way too much time for a normal person.

Taking mental shortcuts is the path most people choose to jump to conclusions.