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Here are 24 cognitive biases that are warping your perception of reality

Here are 24 cognitive biases that are warping your perception of reality

https://www.weforum.org/agenda/2018/12/24-cognitive-biases-that-are-warping-your-perception-of-reality/

“At the beginning of the infographic, you may have noticed illustrations of two gentlemen.

In case you were wondering, those happen to represent Daniel Kahneman and Amos Tversky, two of the leading social scientists known for their contributions to this field. Not only did they pioneer work around cognitive biases starting in the late 1960s, but their partnership also resulted in a Nobel Prize in Economics in 2002.

Biases Distorting Reality

Here are a few examples of particular biases that work to warp your perception of what is real:

Declinism:
You remember the past as better than it was, and expect the future to be worse than it is likely to be. This is an interesting one, since statistically this is one of the most peaceful and prosperous times in history – yet the 24-hour news cycle rarely reflects this. (For a good example how the world is improving, see these six charts)

Just World Hypothesis:
Your preference for a just world makes you presume that it exists. Of course, it’s uncomfortable to think that the world is unfair, but by understanding this you will make more accurate judgments about people and situations.

Belief Bias:
If a conclusion supports your existing beliefs, you’ll rationalize anything that supports it. In other words, instead of willingly looking at new information, we are primed to defend our own ideas without actually questioning them.

Framing Effect:
Context and delivery can have a big impact on how a story is interpreted. We must have the humility to recognize that we can be manipulated, and work to limit the effect that framing has on our critical thinking.

Want to see more on cognitive biases? Here are 188 of them in one infographic.”

Cognitive Bias Infographic

“Every Single Cognitive Bias in One Infographic

View the high resolution version of today’s graphic by clicking here.

The human brain is capable of incredible things, but it’s also extremely flawed at times.

Science has shown that we tend to make all sorts of mental mistakes, called “cognitive biases”, that can affect both our thinking and actions. These biases can lead to us extrapolating information from the wrong sources, seeking to confirm existing beliefs, or failing to remember events the way they actually happened!

To be sure, this is all part of being human – but such cognitive biases can also have a profound effect on our endeavors, investments, and life in general. For this reason, today’s infographic from DesignHacks.co is particularly handy. It shows and groups each of the 188 known confirmation biases in existence.

WHAT IS A COGNITIVE BIAS?

Humans tend to think in certain ways that can lead to systematic deviations from making rational judgments.

These tendencies usually arise from:

  • Information processing shortcuts
  • The limited processing ability of the brain
  • Emotional and moral motivations
  • Distortions in storing and retrieving memories
  • Social influence

Cognitive biases have been studied for decades by academics in the fields of cognitive science, social psychology, and behavioral economics, but they are especially relevant in today’s information-packed world. They influence the way we think and act, and such irrational mental shortcuts can lead to all kinds of problems in entrepreneurship, investing, or management.

COGNITIVE BIAS EXAMPLES

Here are four examples of how these types of biases can affect people in the business world:

Familiarity Bias: An investor puts her money in “what she knows”, rather than seeking the obvious benefits from portfolio diversification. Just because a certain type of industry or security is familiar doesn’t make it the logical selection.

Self-Attribution Bias: An entrepreneur overly attributes his company’s success to himself, rather than other factors (team, luck, industry trends). When things go bad, he blames these external factors for derailing his progress.

Anchoring Bias: An employee in a salary negotiation is too dependent on the first number mentioned in the negotiations, rather than rationally examining a range of options.

Survivorship Bias: Entrepreneurship looks easy, because there are so many successful entrepreneurs out there. However, this is a cognitive bias: the successful entrepreneurs are the ones still around, while the millions who failed went and did other things.”

 

Posted on: January 3, 2019, 12:53 pm Category: Uncategorized

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