Glossary

Cognitive Biases

A collection of cognitive biases that impact decision making, communication, and strategy.

Hyperbolic Discounting

Hyperbolic discounting is a behavioral economic model that describes the way people choose between rewards that they can receive at different times. Traditional economic models assume that people discount future rewards at a constant rate, known as exponential discounting. However, empirical observations suggest that people tend to value future rewards less than immediate ones at a rate that does not remain constant over time—a phenomenon known as hyperbolic discounting. This model shows individuals have a stronger preference for more immediate payoffs relative to later payoffs, making the subjective value of rewards decrease more rapidly as the delay to their receipt increases.

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Base Rate Fallacy

The base rate fallacy is a common cognitive error that occurs when evaluating probabilities. It emerges when individuals ignore or undervalue the base rate information—general statistical data—in favor of specific or anecdotal evidence. This can lead to skewed reasoning and mistaken conclusions since the base rate is a vital piece of the puzzle when accurately assessing the likelihood of events.

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Illusion of Control

The concept of illusion of control is a psychological misperception where individuals believe they have influence over outcomes that they actually do not control. This cognitive bias can affect various aspects of life and decision making, particularly in situations where chance plays a large role, such as gambling or health-related behaviors. People who exhibit the illusion of control may overestimate their ability to control events, leading to overconfidence in their personal efficacy.

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The Forer / Barnum Effect

The Forer effect, also known as the Barnum effect, is a psychological phenomenon where individuals believe that personality descriptions apply specifically to them, despite the fact that the description is vague enough to apply to a wide range of people. This tendency plays a significant role in the realms of astrology, fortune-telling, and some types of personality tests. The effect is named after psychologist Bertram R. Forer who, in 1948, conducted a study demonstrating that when students were given a personality test and received a generic personality analysis, they rated it as highly accurate for themselves despite the fact that all students had received the identical analysis.

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Ben Franklin Effect

The Ben Franklin effect is a psychological phenomenon that suggests a person who performs a favor for someone else is more likely to feel positive about them afterward. Named after American founding father Benjamin Franklin, this concept is grounded in cognitive dissonance theory, which deals with the discomfort one feels when holding conflicting beliefs or attitudes. This intriguing aspect of human psychology has been observed in various social and interpersonal contexts, leading to the notion that asking for a small favor can be a strategic way to forge and strengthen relationships.

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Cognitive Dissonance

Cognitive dissonance is a psychological phenomenon that arises when a person holds two or more contradictory beliefs, values, or ideas at the same time. The nature of this dissonance is such that when confronted with evidence that challenges their existing beliefs, people may either adjust their beliefs, justify them, or ignore the new information to minimize discomfort. This process plays a critical role in decision making, as individuals strive to make choices that align with their self-image and previously held convictions, often adjusting their perceptions post-decision to reduce any dissonance experienced.

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Availability Heuristic

The availability heuristic refers to the human tendency to use readily available information to make judgments and decisions. Originally identified by psychologists Daniel Kahneman and Amos Tversky in the 1970s, the availability heuristic operates on the principle that if something can be recalled easily, it must be important or at least more prevalent than alternative outcomes which are not as easily recalled. This mental shortcut often leads individuals to overestimate the frequency or probability of events based on their prominence or memorability rather than on actual data or statistical evidence.

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Salience Bias

Salience bias refers to the human tendency to focus on items or information that are more prominent, noticeable, or emotionally striking and to undervalue the importance of less prominent information. This bias occurs because certain stimuli naturally draw more of our attention due to their distinct characteristics, which can lead to an imbalanced perception of reality.

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Survivorship bias

Survivorship bias refers to the logical error of concentrating on the people or things that "survived" some process while inadvertently overlooking those that did not because of their lack of visibility. This bias can lead to false conclusions, as the results or remaining subjects are not representative of the initial group or conditions.

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Selection Bias

Selection bias occurs when the participants enrolled in a study do not represent the target population, leading to distorted results. This type of bias is particularly problematic since it can compromise the validity of the research, yielding conclusions that may not be applicable to the broader context for which they are intended.

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Zeigarnik Effect

The Zeigarnik Effect is a psychological phenomenon that arises from our inherent tendency to remember interrupted or uncompleted tasks better than those we've completed. Named after its discoverer, Bluma Zeigarnik, a Lithuanian-Soviet psychologist, this effect is based on the principle that incomplete tasks create a cognitive tension that enhances their memorability. It has far-reaching applications in understanding human memory and motivation, influencing how we perceive task completion and even the way we manage and prioritize work.

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Apophenia

Apophenia is the human tendency to perceive meaningful patterns or connections within random or unrelated data. While apophenia is often discussed in a clinical context, its manifestations are widely observed in everyday life. From seeing shapes in clouds to finding significance in numbers or events, it reflects a fundamental aspect of how people interpret the world around them. The identification and interpretation of patterns help individuals make sense of complex environments, but when these perceptions are incorrect, they can lead to superstitious thinking or the reinforcement of biases.

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Law of the Instrument

The Law of the Instrument is a cognitive bias that describes a tendency to over-rely on a familiar tool or method. It is built on the idea that with a limited approach, one might attempt to apply the same methodology across various situations, regardless of its suitability. The phrase "If all you have is a hammer, everything looks like a nail" encapsulates this concept effectively, illustrating the propensity to use a particular tool or approach out of habit or comfort, rather than considering other potentially more appropriate options.

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Functional Fixedness

Functional fixedness is a cognitive bias that can impede problem-solving and creativity. It describes the tendency for individuals to see objects and concepts only in their most conventional or familiar uses. In essence, when someone is experiencing functional fixedness, they struggle to use an object in a novel way that's different from its standard function, which can be a barrier when trying to solve problems that require innovative thinking.

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Conservatism Bias

Conservatism bias is a cognitive and psychological phenomenon wherein individuals tend to stick to their pre-existing beliefs or initial judgments, even when new evidence is presented. This bias can inhibit people from adequately adjusting their views, leading to a resistance to change and a preference for the status quo.

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Common Source Bias

Common source bias is a particular challenge in research that arises when the same group of respondents provides information used to measure both the independent and the dependent variables. The presence of this bias can compromise the validity of a study, making results appear more correlated than they actually are. Recognizing and addressing common source bias is essential for obtaining reliable and credible data, especially in fields like social science, marketing, and psychology, where surveys and questionnaires are frequent tools of data collection.

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Bias Blind Spot

Bias blind spot is a cognitive bias that leads individuals to recognize the impact of biases on the judgment of others while failing to see the influence of biases on their own judgment.

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