Cognitive biases are systematic patterns of deviation from norm or rationality in judgment. They are mental shortcuts, or heuristics, that the brain uses to simplify information processing and make decisions more quickly. While often useful, these biases can lead to distorted perceptions of reality and flawed decision-making. Here's a summary of 20 common cognitive biases and their effects on how we perceive our environment and make choices.
These biases influence how we seek out, interpret, and recall information, often reinforcing our existing beliefs.
- Confirmation Bias: The tendency to search for, interpret, favor, and recall information that confirms or supports one's preexisting beliefs or hypotheses. This affects our decision-making by causing us to selectively gather evidence, leading to skewed perspectives and poor choices. For instance, an investor might only seek out news that is positive about a stock they own, ignoring any negative indicators.
- Anchoring Bias: The over-reliance on the first piece of information offered when making decisions. This initial "anchor" influences subsequent judgments. In negotiations, the first price suggested often sets the stage for the rest of the discussion, and in everyday life, the initial price we see for a product can make subsequent, lower prices seem like a better deal than they actually are.
- Availability Heuristic: Overestimating the importance of information that is most readily available to us. Events that are more recent, vivid, or emotionally charged are more easily recalled and thus perceived as being more common or likely to occur. For example, after hearing several news reports about a plane crash, you might feel that air travel is more dangerous than it statistically is.