Category: Behavioral economics

24 Cognitive Biases That Are Warping Your Perception of Reality


This post is by Jeff Desjardins from Visual Capitalist


We are each entitled to our own personal world view.

But unfortunately, when it comes to interpreting information and trying to make objective sense of reality, human brains are hard-wired to make all kinds of mental mistakes that can impact our ability to make rational judgments.

In total, there are over 180 cognitive biases that interfere with how we process data, think critically, and perceive reality.

Flawed Human Reasoning

There is no simple way to get around these basic human instincts, but one thing that we can do is understand the specific mistakes we make and why.

Today’s infographic comes to us from School of Thought, a non-profit dedicated to spreading critical thinking. The graphic describes 24 of the key biases that warp our sense of reality, providing useful examples along the way.

24 Cognitive Biases That Are Warping Your Perception of Reality

At the beginning of the infographic, you may have noticed illustrations of two gentlemen.

In case you were wondering, those happen to represent Daniel Kahneman and Amos Tversky, two of the leading social scientists known for their contributions to this field. Not only did they pioneer work around cognitive biases starting in the late 1960s, but their partnership also resulted in a Nobel Prize in Economics in 2002.

Biases Distorting Reality

Here are some of the biases we found most interesting from the list:

Declinism:
You remember the past as better than it was, and expect the future to be worse than it is likely to be. This is an interesting one, since statistically this is (Read more...)

Every Single Cognitive Bias in One Infographic


This post is by Jeff Desjardins from Visual Capitalist


View a high resolution version of this graphic

Cognitive Bias Infographic

Every Single Cognitive Bias in One Infographic

View the high resolution version of today’s graphic by clicking here.

The human brain is capable of incredible things, but it’s also extremely flawed at times.

Science has shown that we tend to make all sorts of mental mistakes, called “cognitive biases”, that can affect both our thinking and actions. These biases can lead to us extrapolating information from the wrong sources, seeking to confirm existing beliefs, or failing to remember events the way they actually happened!

To be sure, this is all part of being human—but such cognitive biases can also have a profound effect on our endeavors, investments, and life in general.

For this reason, today’s infographic from DesignHacks.co is particularly handy. It shows and groups each of the 188 known confirmation biases in existence.

What is a Cognitive Bias?

Humans have a tendency to think in particular ways that can lead to systematic deviations from making rational judgments.

These tendencies usually arise from:

  • Information processing shortcuts
  • The limited processing ability of the brain
  • Emotional and moral motivations
  • Distortions in storing and retrieving memories
  • Social influence

Cognitive biases have been studied for decades by academics in the fields of cognitive science, social psychology, and behavioral economics, but they are especially relevant in today’s information-packed world. They influence the way we think and act, and such irrational mental shortcuts can lead to all kinds of problems in entrepreneurship, investing, or management.

Cognitive Bias (Read more...)