Cognitive biases are
systematic errors in our thinking process that leads to
poor judgments and
bad
decisions.
When we process and interpret information to make
decisions, we
are constantly influenced by internal thoughts and
beliefs (cognitive biases) that are not necessarily reasonable,
reliable, or even accurate. Cognitive biases create mental
barriers that block or filter the reality of a situation.
The good news is that the process of making
decisions
could be improved by being aware and
recognizing those cognitive biases.
Examples of cognitive bias
Example of confirmation bias:
Confirmation bias is the inclination to search for information
that validates or supports our prior believes or values.
Conversation between A and B about confirmation bias. A: What is confirmation bias? B: Okay, let me break it down for you. By Flinkliv.com
Conversation between A and B about confirmation bias. A: I will never vote for the Pink one B: Why? A: None of my friends like him. I read a lot of bad news about him on social media B: This is confirmation bias. A: What do you mean? B: The chances are that most of your friends post information that reinforces your beliefs B: Have you considered the idea that you might be wrong? B: You need to look for news that challenges your beliefs. By Flinkliv.com
Example of confirmation bias:
Conversation between A and B about confirmation bias. A: I will never travel by plane again B: Why? A: I googled it. 125 accidents in 2019 and 90 in 2020. B: This is confirmation bias A: What do you mean? B: You need to look for news that challenges your beliefs B: Air travel risks are 0.07 deaths for every 1 billion miles traveled. By Flinkliv.com
Example of echo chamber:
An echo chamber is an environment where people encounter ideas,
beliefs, or opinions that reflect and reinforce their own. You
have to break out of any echo chamber environment by seeking
external & neutral views, playing a devil's advocate, forming
diverse teams, etc.
Conversation between A and B about echo chamber. A: Check this news on social media B: Social media algorithms fuel echo chambers, limit new ideas, and boost polarization. A: That's it, I'm blocking you. By Flinkliv.com
Example of complex bias:
Using jargon can create barriers and exclude those unfamiliar with
the terms; to avoid this, prioritize clear and accessible language
to ensure effective communication and inclusivity.
Conversation between A and B about complex bias. A: Why do folks use jargon? B: It's a complex bias. They think it makes 'em look smart. A: Let's employ breviloquence and diaphaneity. By Flinkliv.com
Example of ambiguity bias:
Ambiguity bias refers to the tendency of people to avoid options
or situations they perceive as ambiguous or unclear. When faced
with uncertain or ambiguous information, individuals often choose
familiar and known options over unfamiliar or ambiguous ones. This
bias can impact decision-making processes, as people may opt for
the safer choice even if it might not be the best decision in the
given context.
Conversation between A and B about ambiguity bias. A: Too many fancy options; let's stick with what we know. B: That's ambiguity bias. By Flinkliv.com
Example of survivorship bias:
Survivorship bias is our tendency to over-focus on the people or
things that have succeeded or survived.
Conversation between A and B about survivorship bias. A: I decided to buy cryptocurrency B: Why? A: The Pink told me his success story. He made a huge gain. B: This is survivorship bias A: What do you mean? B: You heard the one that survived. You heard only from the guy who succeeded. But how many lost their money. By Flinkliv.com
Example of sampling cognitive bias:
Sampling bias occurs when a sample is collected in such a way that
some members of the population have a lower or higher sampling
probability than others.
Conversation between A and B about sampling cognitive bias. A: From the survey, many people bought our products. B: A survey? A: Emailed after purchase. B: This is sample cognitive bias. B: Who answered no? By Flinkliv.com
Example of cognitive bias towards introverts:
Conversation between A and B about cognitive bias towards introverts. A: The Red is an introvert. B: So what? A: He must be anti-social, shy, not-confident, maybe even depressed. B: This is a cognitive bias towards introverts. A: What do you mean? B: You are stereotyping introverts. B: You described behaviors that apply to both introverts and extroverts. B: Introverts get energy from the inside; it has nothing to do with being anti-social or not-confident. By Flinkliv.com
Example of availability heuristic:
The availability heuristic is our tendency to draw conclusions,
make judgments, or make
decision based
on what comes to our mind immediately.
Conversation between A and B about availability heuristic. A: I want to play a lottery. B: Why? A: I want to be happy like the winners on TV. B: Oh, boy. This is an Availability Heuristic; it is a cognitive bias. A: What? B: Thanks to the advertising industry, happy winners are the immediate and only examples that come to your mind. B: The ads don't show you the over majority of losers. Or the winners that ruined their lives. By Flinkliv.com
Example of curse of knowledge bias:
The curse of knowledge is a cognitive bias that happens when you
interact with others assuming they have the same knowledge or
expertise as you do.
Conversation between A and B about curse of knowledge bias. A: Our clients are idiots. A: They barely know how to use the product. B: This is Curse of Knowledge Bias. B: You built the product, they did not. B: You know the ins and outs, they don’t. By Flinkliv.com
Example of loss aversion bias:
Loss aversion is the inclination to favor avoiding losses to
earning equivalent gains.
Conversation between A and B about loss aversion bias. A: I keep selling stocks out of fear and lose money. B: This is loss aversion cognitive bias. B: People feel the pain of a loss more than they feel the pleasure of making a profit. B: You are selling stocks out of fear of further losses and miss out on market rebounds. B: Conduct due diligence and buy for the long term. By Flinkliv.com
Example of Apophenia bias:
Apophenia bias is the tendency to identify patterns and meaning in
arbitrary data or information.
Conversation between A and B about Apophenia bias. A: I keep losing in stocks despite all my efforts. B: What efforts? A: Finding patterns and making sense of charts. B: This is Apophenia. B: Apophenia is a cognitive bias; you try to see patterns in things that are totally random. B: To overcome this issue, be skeptical, recognize the bias, and challenge your assumptions. By Flinkliv.com
Example of Dunning-Kruger-effect bias:
The Dunning–Kruger effect is a cognitive bias that people with low
knowledge, experience, or skills tend to overestimate their own
ability and that people with high knowledge, experience, or skill
tend to underestimate their own ability.
Conversation between A and B about Dunning–Kruger-effect bias. A: The more I know about data science the less I think I know about data science. B: It is normal. B: This is the Dunning–Kruger effect, a cognitive bias. By Flinkliv.com
Example of appeal to authority bias:
The appeal to authority bias is a cognitive bias when you use an
authority figure or institution opinion instead of evidence.
Conversation between A and B about appeal to authority bias. A: We need to change our architecture. B: How come? A: The expert told us. B: Did he provide any evidence to back up his claim? A: Nope, he is an expert. B: Oh! Boy, this is an appeal to authority bias. A: What? B: It is when you use an authority figure or institution opinion instead of evidence. A: Does it mean that I have to question every authority figure or institution's opinions? By Flinkliv.com
Example of cognitive ease:
We tend to look or listen to easy, familiar, and repetitive
solutions to solve complex
problems.
Always take time to gather, check, and process information, and
opt for deep thinking instead of easy solutions.
Conversation between A and B about cognitive ease bias. A: I like this party's solutions: more jobs, prosperity, kick pink people, etc. B: This is cognitive ease. B: Beware of easy solutions for complex issues. These ideas are popular and familiar. Things are more complex than that. You have to face complexity. By Flinkliv.com
Example of Self-Serving bias:
A self-serving bias is believing that good things happen to you
thanks to your skills, hard work, and behavior. In contrast, bad
things happen to you because of outside circumstances rather than
taking personal responsibility.
Conversation between A and B about Self-Serving bias. B: How was the game? A: We won, we are the best. A: We lost before 'cause of the bad referee, weather, injuries, etc. B: This is Self-Serving Bias. B: You win thanks to your behavior and actions; you lose, blame external factors, and it is not your fault. A: I envy people who have never met you. By Flinkliv.com
Example of projection bias
The projection bias happens when we rely on our current status,
such as emotions, values, or beliefs, as reference points to
predict the preferences of our future selves.
Conversation between A and B about projection bias. A: I will be happier next year. B: Projection bias. B: Mispredicting the future based on today's perspective. A: You ruined my new year's resolution. By Flinkliv.com
Example of present bias
In a trade-off situation, present bias is the tendency to settle
for a smaller current (or present) reward instead of waiting for a
larger future reward. It describes the trend of overvaluing
immediate rewards while putting less worth in long-term
consequences.
Conversation between A and B about present bias. B: Over time junk food leads to poor health. A: It is so delicious. B: This is present bias. B: To make choices for the present over the future. A: But, it is delicious. By Flinkliv.com
