Cognitive Biases in Decision Making

Cognitive biases are systematic patterns of deviation from rationality or good judgment.

These biases affect various aspects of decision-making, including:

• Confirmation Bias: Seeking information that confirms pre-existing beliefs.
• Availability Heuristic: Overestimating easily available information.
• Anchoring Bias: Relying heavily on initial information.
• Overconfidence Bias: Overestimating one’s abilities or knowledge.
• Status Quo Bias: Preferring things to stay the same.
• Sunk Cost Fallacy: Making decisions based on past investments.
• Hindsight Bias: Perceiving outcomes as predictable after the fact.
• Bandwagon Effect: Adopting behaviors due to others' actions.
• Optimism Bias: Underestimating risks and overestimating success likelihood.
• Loss Aversion: Preferring to avoid losses over acquiring equivalent gains.

Understanding these biases is crucial in making rational and informed decisions in various contexts.