Indecision Bias

A not all too famous person once said, “I used to be indecisive.  Now I am not sure.” — me in the not too distant past. Choice is hard.  When faced with more than 2 additional options to choose from, we often get discombobulated…

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Scarcity Bias

No, I am not referring to that 1998 action movie with Tia Carrere.  More to situations where you spend a month researching the best flat screen TV, then invested twice as much money in a penny stock based solely on a hot…

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Anchoring Bias

This is clinging to a fact or figure that should have no bearing on your decision.  Often, we use an initial value or first piece of informationa as a “starting point” in decision making.  Even if the initial value was…

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Decision Heuristics

Or why we adhere so strongly to our beliefs.   One culprit is what the rule of consistency describes: a powerful force that compels us to act in a way that is consistent with our past behavior (this rule is extensively…

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Overconfidence

A close relative to the previously mentioned Confirmation Bias, Overconfidence is the tendency to overestimate our own abilities (i.e., we aren’t as smart as we think we are).  We tend to think that we are much better forecasters and estimators than we…

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Confirmation Bias

We let confirmation bias take control of our mind by only seeking out information from sources that agree with our pre-existing beliefs.  Conversely, we tend to ignore and dismiss information (= disconfirming evidence) which tend to disprove our initial impressions. It’s the tendency to interpret the glass…

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Bigness Bias

Have you also observed that many people behave as if not all dollars are created equal?  By assigning relative values to different moneys that in reality have the same buying power, they run the risk of being too quick to spend,…

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