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Cards In This Set
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1. Cognitive errors:
Conservatism bias |
A belief perseverance
bias in which people maintain their prior views or forecasts by inadequately
incorporating new information.
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Confirmation bias
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A belief perseverance
bias in which people tend to look for and notice what confirms their beliefs,
to ignore or undervalue what contradicts their beliefs, and to misinterpret
information as support for their beliefs.
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Representativeness bias
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A belief perseverance
bias in which people tend to classify new information based on past experiences
and classifications.
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Illusion of control bias
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A belief perseverance
bias in which people
tend to believe that they can control or influence outcomes when, in fact, they
cannot.
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Hindsight bias
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A belief perseverance
bias with selective
perception and retention aspects in which people may see past events as having
been predictable and reasonable to expect.
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Anchoring and adjustment bias
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An
information-processing bias in which the use of a psychological heuristic (rule of thumb or mental shortcut) influences the way people estimate probabilities.
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Mental accounting bias
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An
information-processing bias in which people treat one sum of money differently
from another equal-sized sum based on which mental account the money is
assigned to.
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Framing bias
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An
information-processing bias in which a person answers a question differently
based on the way in which it is asked (framed).
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Availability bias
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An
information-processing bias in which people take a heuristic (rule of thumb or mental
shortcut) approach to estimating
the probability of an outcome based on how easily the outcome comes to mind.
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2. Emotional bias :
Loss-aversion bias |
A emotional bias in which people
tend to strongly prefer avoiding losses as opposed to achieving gains.
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Overconfidence bias
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An emotional bias in which people demonstrate
unwarranted faith (belief) in their own intuitive (trực giác) reasoning, judgments, and/or cognitive
abilities.
Illusion of knowledge and self-attribution biases contribute to the overconfidence bias. Illusion of knowledge bias is overestimating knowledge levels, abilities, and access to information. Self-attribution bias is a bias in which people take personal credit for successes and attribute failures to external factors outside the individual’s control. |
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Self-control bias
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An emotional bias in which people
fail to act in pursuit of their long- term, overarching goals because of a lack
of self-discipline. There is an inherent conflict between short-term
satisfaction and achievement of some long-term goals.
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Status quo bias
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An emotional bias in
which people do nothing (i.e., maintain the “status quo”) instead of making a
change. People are generally more comfortable keeping things the same than with
change and thus do not necessarily look for opportunities where change is
beneficial.
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Endowment bias
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An emotional bias in
which people value an asset more when they hold rights to it than when they do
not.
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Regret-aversion bias
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An emotional bias in
which people tend to avoid making decisions that will result in action out of
fear that the decision will turn out poorly. Simply put, people try to avoid
the pain of regret associated with bad decisions.
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