People tend to overestimate their own abilities. If you believe you're a better driver than most, you might engage in riskier driving behaviors.

10. Overconfidence Bias:

People continue to invest in a decision or project based on the resources already committed, even when it's clear that further investment won't lead to better outcomes. For instance, you might keep pouring money into a failing business because you've already invested a significant amount.

11. Sunk Cost Fallacy:

We tend to attribute others' actions to their character while attributing our actions to external factors. If someone cuts you off in traffic, you might think they're a bad person, but if you do it, you might blame stress or distractions.

7. Fundamental Attribution Error:

After an event occurs, we tend to believe that we predicted it all along. For instance, if a stock you invested in performs poorly, you might say, "I knew it was going to drop."

4. Hindsight Bias:

People with low ability at a task tend to overestimate their ability, while those with high ability may underestimate it. An example could be an inexperienced chess player believing they are as skilled as a grandmaster.

5. Dunning-Kruger Effect:

We overestimate the extent to which others share our beliefs, attitudes, and behaviors. If you're a vegetarian, you might assume that more people are vegetarians than there actually are.

19. False Consensus Effect:

People tend to seek out, interpret, and remember information that confirms their existing beliefs. For example, if you believe that a specific diet is effective, you're more likely to remember the success stories of people who followed that diet.

1. Confirmation Bias:

People tend to overvalue items simply because they own them. If someone offers you less money for a used item than you think it's worth, you might refuse to sell it because you value it more due to ownership.

13. Endowment Effect:

We align our beliefs and behaviors with those of a group to fit in or avoid conflict, even if it goes against our personal convictions. If your friends are all following a particular trend, you might feel pressured to do the same even if you don't agree with it.

18. Conformity Bias:

We fear losing what we have more than we desire gaining something new. You might refuse to sell a losing stock because you don't want to accept the loss, even if it's a wise financial decision.

12. Loss Aversion:

People tend to underestimate the time, costs, and risks of future actions and overestimate the benefits. If you're planning a home renovation, you might expect it to take a few weeks when it ends up taking several months.

21. Planning Fallacy:

People attribute their successes to internal factors but attribute their failures to external factors. For instance, if you succeed in a project, you might credit your skills, but if you fail, you blame a lack of resources.

6. Self-Serving Bias:

We give more weight to recent events or information. If a company had a great quarter, you might invest heavily in its stock, ignoring its historical performance.

14. Recency Bias:

In group settings, the desire for harmony or conformity can lead to the acceptance of a flawed decision. For example, in a board meeting, everyone agrees with the CEO's plan without raising concerns to maintain a harmonious atmosphere.

9. Groupthink:

People believe that the world is fundamentally fair, leading to victim-blaming and a tendency to ignore systemic injustices. For example, someone might blame a victim of a scam for their gullibility, assuming they should have known better.

17. Just-World Hypothesis:

People give disproportionate weight to the first piece of information they encounter when making decisions. If you're negotiating the price of a used car, and the seller asks for a high price initially, you might end up paying more than you should because the high anchor influenced your perception of a fair price.

3. Anchoring Bias:

Here's a comprehensive list of cognitive biases and mind traps, each with a clear explanation and a perfect example:
<ol>
<li>Confirmation Bias</li>
<li>Availability Heuristic</li>
<li>Anchoring Bias</li>
<li>Hindsight Bias</li>
<li>Dunning-Kruger Effect</li>
<li>Self-Serving Bias</li>
<li>Fundamental Attribution Error</li>
<li>Status Quo Bias</li>
<li>Groupthink ...</li>
</ol>

Most Common Thinking Errors

People generalize positive qualities of a person, company, or brand to all aspects of their character or products. If you find a CEO charismatic and successful, you might assume that their business decisions are also excellent.

15. Halo Effect:

We experience discomfort when holding conflicting beliefs or attitudes. To resolve this discomfort, we might rationalize or modify our opinions. If you smoke cigarettes but know they're bad for your health, you might convince yourself that the risks are exaggerated.

20. Cognitive Dissonance:

We pay more attention to and remember negative experiences or information more than positive ones. If you receive numerous compliments and one criticism, you're likely to dwell on the criticism.

16. Negativity Bias:

We rely on readily available information when making decisions. For example, if you see news reports of several plane crashes in a short period, you might think that flying is more dangerous than it statistically is.

2. Availability Heuristic:

People prefer things to stay the same and are resistant to change, even when change could be beneficial. You might resist switching to a new phone model even though it offers significant improvements over your current one.

8. Status Quo Bias:

These cognitive biases and mind traps influence decision-making, perception, and behavior in various aspects of our lives. Recognizing them can help us make more rational and informed choices.

19. False Consensus Effect:

Similar ideas to 19. False Consensus Effect:

Examples of the egocentric bias

10. Overconfidence Bias:

20. Cognitive Dissonance: