50 Cognitive Biases in the

Modern World
February 1, 2020

Published

3 years ago

on
Cognitive biases are widely accepted as something that
makes us human.

Every day, systematic errors in our thought process

impact the way we live and work. But in a world where
everything we do is changing rapidly—from the way we
store information to the way we watch TV—what really
classifies as rational thinking?

It’s a question with no right or wrong answer, but to help

us decide for ourselves, today’s infographic from TitleMax
lists 50 cognitive biases that we may want to become
privy to.

In the name of self-awareness, here’s a closer look at

three recently discovered biases that we are most prone
to exhibiting in the modern world.

Automation Bias
AI-infused applications are becoming incredibly good at
“personalizing” our content, but will there come a time
when we let algorithms make all of our decisions?

Automation bias refers to the tendency to favor the

suggestions of automated systems.

Take Netflix, for example. Everything we see on the

platform is the result of algorithms—even the preview
images that are generated. Then, to harness the power of
data and machine learning, Netflix categorizes its content
into tens of thousands of micro-genres. Pairing these
genre tags with a viewer’s history allows them to assign
several of over 2,000 “taste profiles” to each user.

And while there’s nothing wrong with allowing Netflix to

guide what we watch, there’s an enormous sea of content
standing by. Estimates from 2015 claimed it would take
nearly four years to watch all of Netflix’s content.
Thousands more hours of content have since been added.

If we want to counter this cognitive bias, finding a new

favorite series on platforms like Netflix may require some
good old-fashioned human curiosity.

The Google Effect

Also known as “digital amnesia”, the aptly named Google
Effect describes our tendency to forget information that
can be easily accessed online.

First described in 2011 by Betsy Sparrow (Columbia

University) and her colleagues, their paper described the
results of several memory experiments involving
technology.

In one experiment, participants typed trivia statements

into a computer and were later asked to recall them. Half
believed the statements were saved, and half believed the
statements were erased. The results were significant:
participants who assumed they could look up their
statements did not make much effort to remember them.

Because search engines are

continually available to us, we may
often be in a state of not feeling we
need to encode the information
internally. When we need it, we will
look it up.

– Sparrow B, et al. Science 333, 777 (2011)

Our modern brains appear to be re-prioritizing the

information we hold onto. Notably, the study doesn’t
suggest we’re becoming less intelligent—our ability to
learn offline remains the same.

The IKEA Effect

Identified in 2011 by Michael Norton (Harvard Business
School) and his colleagues, this cognitive bias refers to
our tendency to attach a higher value to things we help
create.

Combining the Ikea Effect with other related traits, such

as our willingness to pay a premium for customization, is a
strategy employed by companies seeking to increase the
intrinsic value that we attach to their products.

For instance, American retailer Build-A-Bear Workshop

is anchored around creating a highly interactive customer
experience. With the help of staff, children (or adults) can
assemble their stuffed animals from scratch, then add
clothing and accessories at extra cost.

Nike also incorporates this bias into its offering. The

footwear company offers a Nike By You line of
customizable products, where customers pay a premium
to design bespoke shoes with an extensive online
configurator.

While there’s nothing necessarily wrong with our

susceptibility to the Ikea Effect, understanding its
significance may help us make more appropriate
decisions as consumers.

What Can We Do?

As we navigate an increasingly complex world, it’s natural

for us to unconsciously adopt new patterns of behavior.