Every day corporations, the media and politicians exploit your cognitive biases to manipulate you.
Cognitive biases are insidious precisely because they are unconscious. So insidious that you make a really bad decision and not realize it for years.
The anchoring effect is an unconscious bias that can dramatically affect your outcome in any negotiation.
With the election behind the nation, there is now urgency to achieve bi-partisan agreement that prevents sequestration and the so-called fiscal cliff. Clear thinking and sound decision-making will require that we all avoid putting on the blinders of partisan bias.
Are you considering a major building project? An addition to your home? An information technology overhaul for your business? If so, be acutely aware of the planning fallacy — and try to avoid its pitfalls. Optimism bias may well be the most significant of all cognitive biases. Read on at https://prismdecision.com/the-planning-fallacy-and-optimism-bias
In decision-making, stubborn allegiance to poor investments can cloud our judgment. We make investments in relationships, stocks, homes, businesses, plans for our children, just about everything. And too often prior investments compel continued investment, despite clear evidence that there will be no return or worse a negative return. This is called the sunk-cost fallacy. Read on at https://prismdecision.com/the-sunk-cost-fallacy.
Lebron James seriously miscalculated the effect on his legacy of his recent ESPN self-anointing. How did he miscalculate so egregiously? He was a victim of certainty bias. What is certainty bias and how can you avoid it? Read on at https://prismdecision.com/hra
Often, when making difficult decisions, we choose what is familiar and reject novelty. We favor the status quo because it is “within our comfort zone.” This is a natural human tendency. However, new research reported in the Proceedings of the National Academy of Sciences demonstrates that effective decision makers need to beware of the potential pitfalls of “status quo bias.”