20 COGNITIVE BIASES THAT SCREW UP YOUR DECISIONS 1. Anchoring bias. 2. Availability heuristic. 3. Bandwagon effect. 4. Blind-spot bias. People ae ever-relant onthe People overestimate the “The probably of one person Falling to recognize your on fie pleco of information thoy Importance ofnfarmaton that adopting a list norenses ‘cognitive biases ise bein heat in salary negotiation, ‘savalale to them. person based on the number of people itself People notice cognitive ‘wnoever makes the fist offer ‘might argue thet smokingis not who hold that bol. This ea ‘and motiational biases much establishes arange of “inheaithy because they know Powerful frm of groupehink ‘more in ohare than in Feasonable possibile in someonewlvedto 100 and and i reason why meetings themeclves. ‘each persons mind Smoked tes packs 2 day se often unproductive, GBP x 5.Choice-eupportive bias. 6, Clustering illusion. 7.Confirmation bias. ‘8. Conservatiom bias. hen you choose something. ‘This le the tendancy to so ‘We ted to isten only 10 ‘here people favor price you tend to fel positive about patterns in random events, information that confirms our ‘evidence aver new evidence or ‘even fthat choloehas flaws, tis keytovarious gambling preconceptions ~ one of the information that has emerged Like how you think your dog i= {alloc he the sea that red ‘many reasons its so hard 10 Popo wore stow to accept ‘sesame even fitbtes is more or less tkaly totum up have anincligent conversation that he Earth was round eople every oncerin a while ‘onaroulette table after sting about climate change because they maintained their ofreds ‘ater understanding that the Planet was Nat, 9. Information bias. 10. Ostrich effect. 11. Outcome bias. 12. Overconfidence. “The tendency 0 seek ‘The decision to gnore Judging a decision based on Information when does not dangerous or negative Theeuteome— sth thantow about eur ables, snd this affect action Mere information information by “burying” ‘exactly the decision was made causes us to take greater risks not always better. With less one's headin the sand, ke inthe moment. Just because in our daly Ives, Experts ae information, people can often ‘nostrich. Research suggests you won aot in vegas doost ‘more prone otis bas than makemore accurateprediaions. that investors check the value ‘moan gambling your money leypeopia since they are moe oftheir holdings significantly was smart decision, ‘convinced that thay are ight. Jose often during bad markots, 13, Placebo effect. 14. Pro-innovation bias. 15. Recency. 16. Salience. When simply believing that “The tendency to weigh the ur tendeney to focus on something wil have acertain Iatest information noreiavily the most easily recognizable feffect on you causes to have than older data. Investors often, features ofa person of concept. that effect. In mesivine people ts limitations, Sound fai, think the market will alwayslook When you thnk about dying. you Given fake pillsoften expevience _Slicon Valley? theway looks today and male might warty abou beng mauled the same physiological effects tiie decisions ballon a8 opposed to what i ‘28 peoole given thereal hing. statistically mor kel ke dying in car accident 17. Selective perception. _18. Stereotyping. 19. Survivorship bias. 20. Zero-risk bias. ‘Allowing our expectations 19 Expecting group orperson to _—_—nestor that comes from Sociologists have found that Influence how we perceive the —_havecertar qualies without focusing only on surviving we love certainty — oven if i's world. An expariment woking a having eel information about ‘examples, causing usto Countrpreduetve. Eminating football game between students the person. allows us to ‘misjudge a situation For risk ently means theres no fiom two universities showed ‘uicky don strangers as instance, we might thik that ‘chance of harm being etsed that one team saw the opposing ends or enemies, but people being an entrepreneur is easy {sam commit more inaction, ‘ed to overuse and abuse. because we havent heard of, al those who failed 9 GAH A