*Cognitive Biases*
ππ»ββοΈ *Master Them Before They Master You!* π«΅π»
*Confirmation Bias:*
ππ»ββοΈ We seek information that confirms existing beliefs, and ignore contrary evidence.
*Example:* Only following news sources you agree with.
*Fix:* Actively seek opposing viewpoints; before decisions, assign a "devil's advocate"
*Sunk Cost Fallacy:*
ππ»ββοΈ We keep investing because we already have, even when it's not rational.
*Example:* A company pours money into a failing product because they've already invested.
*Fix:* Ask, "If I were starting today, would I still invest?"
*Halo Effect:*
ππ»ββοΈ Our impression of one trait impacts how we see unrelated ones.
*Example:* A well-dressed candidate is assumed to be more competent.
*Fix:* Seek evidence, not reputation, appearance, or confidence.
*Recency Bias:*
ππ»ββοΈ Recent events have a stronger influence on decisions.
*Example:* A manager rates an employee based on their last two weeks, ignoring consistent performance all year.
*Fix:* Pull back and look long-term.
*Optimism Bias:*
ππ»ββοΈ We believe we're less likely to experience negative outcomes.
*Example:* Founders assume their business won't fail, even though most do.
*Fix:* Consider worst-case scenarios before making big decisions.
*Anchoring Bias:*
ππ»ββοΈ We rely too heavily on the first piece of information we receive.
*Example:* A job candidate struggles to negotiate upward from a lowball offer.
*Fix:* Don't accept an initial value as your reference point - find independent sources.
*Self-Serving Bias:*
ππ»ββοΈ We take credit for successes but blame external factors for failures.
*Example:* A manager takes credit for a project's success but blames the team if it fails.
*Fix:* Force yourself to own mistakes, not just successes.
*Negativity Bias:*
ππ»ββοΈ We give more weight to negative experiences than positive ones.
*Example:* An employee gets 10 positive comments and I negative, but only remembers the latter
*Fix:* Keep a list of past successes to balance your perception.
*Availability Heuristic:*
ππ»ββοΈ We judge the likelihood of events based on how easily examples come to mind
*Example:* Avoiding flying after seeing a plane crash in the news
*Fix:* If you're using anecdotes, ask: "Is this actually common, or just memorable?""
*Dunning-Kruger Effect:*
ππ»ββοΈ Incompetent people overestimate abilities, experts underestimate
*Example:* Attempting to rewire your house after watching one YouTube video house
*Fix:* If you're a confident novice, assume you're overestimating and get feedback
*Framing Effect:*
ππ»ββοΈ The way information is presented influences our decisions
*Example:* "90% fat-free" sounds healthier than "10% fat"
*Fix:* Ask, "Would I feel different if this was worded another way?"
*Bandwagon Effect:*
ππ»ββοΈ We adopt beliefs or behaviors just because others do.
*Example:* Consumers rush to buy a trendy item without considering if they actually like it.
*Fix:* Ask, "Would I still believe this if no one else did?"
*Endowment Effect:*
ππ»ββοΈ We overvalue things just because we own them.
*Example:* A person believes their car is worth more than market value just because it's theirs
*Fix:* Ask, "Would I pay this much for it if I didn't already own it?"
ππ»ββοΈ *Thanks for reading .
ππ»ββοΈ Share with your friends as well.
π§ *Cognitive Biases* π§
ππ»βοΈ *Master Them Before They Master You!* π«΅π»
π° *Confirmation Bias:*
ππ»βοΈ We seek information that confirms existing beliefs, and ignore contrary evidence.
βοΈ *Example:* Only following news sources you agree with.
β
*Fix:* Actively seek opposing viewpoints; before decisions, assign a "devil's advocate"
π° *Sunk Cost Fallacy:*
ππ»βοΈ We keep investing because we already have, even when it's not rational.
βοΈ *Example:* A company pours money into a failing product because they've already invested.
β
*Fix:* Ask, "If I were starting today, would I still invest?"
π° *Halo Effect:*
ππ»βοΈ Our impression of one trait impacts how we see unrelated ones.
βοΈ *Example:* A well-dressed candidate is assumed to be more competent.
β
*Fix:* Seek evidence, not reputation, appearance, or confidence.
π° *Recency Bias:*
ππ»βοΈ Recent events have a stronger influence on decisions.
βοΈ *Example:* A manager rates an employee based on their last two weeks, ignoring consistent performance all year.
β
*Fix:* Pull back and look long-term.
π° *Optimism Bias:*
ππ»βοΈ We believe we're less likely to experience negative outcomes.
βοΈ *Example:* Founders assume their business won't fail, even though most do.
β
*Fix:* Consider worst-case scenarios before making big decisions.
π° *Anchoring Bias:*
ππ»βοΈ We rely too heavily on the first piece of information we receive.
βοΈ *Example:* A job candidate struggles to negotiate upward from a lowball offer.
β
*Fix:* Don't accept an initial value as your reference point - find independent sources.
π° *Self-Serving Bias:*
ππ»βοΈ We take credit for successes but blame external factors for failures.
βοΈ *Example:* A manager takes credit for a project's success but blames the team if it fails.
β
*Fix:* Force yourself to own mistakes, not just successes.
π° *Negativity Bias:*
ππ»βοΈ We give more weight to negative experiences than positive ones.
βοΈ *Example:* An employee gets 10 positive comments and I negative, but only remembers the latter
β
*Fix:* Keep a list of past successes to balance your perception.
π° *Availability Heuristic:*
ππ»βοΈ We judge the likelihood of events based on how easily examples come to mind
βοΈ *Example:* Avoiding flying after seeing a plane crash in the news
β
*Fix:* If you're using anecdotes, ask: "Is this actually common, or just memorable?""
π° *Dunning-Kruger Effect:*
ππ»βοΈ Incompetent people overestimate abilities, experts underestimate
βοΈ *Example:* Attempting to rewire your house after watching one YouTube video house
β
*Fix:* If you're a confident novice, assume you're overestimating and get feedback
π° *Framing Effect:*
ππ»βοΈ The way information is presented influences our decisions
βοΈ *Example:* "90% fat-free" sounds healthier than "10% fat"
β
*Fix:* Ask, "Would I feel different if this was worded another way?"
π° *Bandwagon Effect:*
ππ»βοΈ We adopt beliefs or behaviors just because others do.
βοΈ *Example:* Consumers rush to buy a trendy item without considering if they actually like it.
β
*Fix:* Ask, "Would I still believe this if no one else did?"
π° *Endowment Effect:*
ππ»βοΈ We overvalue things just because we own them.
βοΈ *Example:* A person believes their car is worth more than market value just because it's theirs
β
*Fix:* Ask, "Would I pay this much for it if I didn't already own it?"
ππ»βοΈ *Thanks for reading π.
ππ»βοΈ Share with your friends as well.