Individual perception and decision-making can be influenced by cognitive biases. Key biases discussed in the document include the self-serving bias, where people attribute successes to internal factors and failures to external factors. Selective perception refers to people interpreting information based on their interests and attitudes. The halo effect is making broad judgments about a person based on a single trait. Contrast effects occur when evaluations are affected by comparisons to others.
Individual perception and decision-making can be influenced by cognitive biases. Key biases discussed in the document include the self-serving bias, where people attribute successes to internal factors and failures to external factors. Selective perception refers to people interpreting information based on their interests and attitudes. The halo effect is making broad judgments about a person based on a single trait. Contrast effects occur when evaluations are affected by comparisons to others.
Individual perception and decision-making can be influenced by cognitive biases. Key biases discussed in the document include the self-serving bias, where people attribute successes to internal factors and failures to external factors. Selective perception refers to people interpreting information based on their interests and attitudes. The halo effect is making broad judgments about a person based on a single trait. Contrast effects occur when evaluations are affected by comparisons to others.
KEYWORDS DEFINITION EXAMPLES Perception A process by which A group of people attend an art individuals organize and exhibition. One individual might interpret their sensory perceive a particular painting as impressions in order to vibrant and emotionally stirring, give meaning to their while another may view it as chaotic environment or confusing Self-serving bias The tendency for A student performs well on a test individuals to attribute and receives a high grade. They may their own successes to attribute their success to their internal factors while intelligence, hard work, or effective putting the blame for study strategies. However, if the failures on external factors same student performs poorly on a different test and receives a low grade, they may attribute the failure to external factors such as a difficult test, unfair grading, or distractions in the environment. Selective The tendency to A group of people with different perception selectively interpret what political affiliations watch a one sees on the basis of televised political debate between one’s interests, two candidates. Individuals may background, experience, come away from the debate with and attitudes reinforced convictions, even if there were valid points made by the opposing candidate that they overlooked or discounted. Halo effect The tendency to draw a You meet someone for the first time general impression about who is well-dressed, confident, and an individual on the basis charismatic. You might develop a of a single characteristics positive overall impression of them based on these qualities. As a result of the halo effect, you may assume that they are also intelligent, trustworthy, and capable, even though you have no direct evidence of these specific qualities. Contrast effects Evaluation of a person’s In a job interview where multiple characteristics that is candidates are being evaluated, if affected by comparisons the first candidate performs poorly, with other people recently subsequent candidates who perform encountered who rank slightly better may appear much higher or lower on the more impressive in comparison. The same characteristics contrast with the initial weak candidate can make the subsequent candidates seem more competent and qualified than they might have been perceived if evaluated individually Overconfidence refers to a cognitive bias A student consistently performs well bias where individuals have an on quizzes and exams in a particular inflated or overly subject. They believe that they have optimistic belief in their mastered the material and don't need own abilities, knowledge, to dedicate as much time or effort to or judgments studying Anchoring bias A tendency to fixate on A and B are negotiating the price of initial information, from a used car. The seller sets an initial which one then fails to asking price that is significantly adequately adjust for higher than the car's market value. subsequent information This high price becomes the anchor, and even if the buyer knows the actual value of the car is lower, they may struggle to make an offer significantly below the initial asking price. Confirmation bias The tendency to seek out A person holds a strong belief that a information that reaffirms particular diet plan is effective for past choices and to weight loss. When they come across discount information that articles, or research studies that contradicts past judgments support the benefits of this diet plan, they eagerly accept and remember this information. However, when they encounter information about potential drawbacks or conflicting evidence regarding the diet plan's effectiveness, they might be more skeptical and inclined to discredit or overlook it Availability bias The tendency for people to When trying to assess the safety of a base their judgments on certain neighborhood, you might information that is readily rely heavily on news stories about available to them crimes that have occurred in that area. The easily accessible information about those specific incidents can create an overestimation of the neighborhood's overall crime rate, leading to a distorted perception. Escalation of An increased commitment A business owner starts a new commitment to a previous decision in venture and invests a substantial spite of negative amount of money, time, and energy information into it. However, as time passes, they realize that the business is not performing well and is consistently incurring losses. Despite the negative indicators and advice from others to cut their losses and move on, the business owner may feel compelled to continue investing in the failing venture due to the substantial resources already committed. They may think, "I've already invested so much, I can't give up now," and continue pouring resources into the business, hoping that it will eventually turn around. Randomness error The tendency of For instance, imagine a weather individuals t believe that forecaster predicting the chance of they can predict the rainfall. They analyze historical outcome of random events data, current atmospheric conditions, and various forecasting models to make their prediction. However, there is always a degree of randomness inherent in weather patterns. A sunny day may unexpectedly have a passing shower, or a predicted storm may bypass an area entirely. Risk aversion The tendency to prefer a An individual has some savings and sure gain of a moderate is considering investing in the stock amount over a riskier market. They have two investment outcome, even if the options: Option X is a low-risk riskier outcome might investment with stable returns, have a higher expected while Option Y is a higher-risk payoff investment with the potential for higher returns but also the possibility of losses. If the person chooses Option X, it indicates risk aversion because they prioritize the safer and more predictable returns, even if it means potentially missing out on the potentially higher gains of Option Y. Hindsight bias The tendency to believe You and your friends are watching a falsely, after an outcome sports game, and you casually of an event is actually mention that you think Team A will known, that one would win. As the game progresses, Team have accurately predicted A starts to perform exceptionally that outcome well and eventually wins the match. After the game, you may be inclined to say, "I knew Team A was going to win all along!" Three-component The proposition that model of creativity individual creativity requires expertise, creative thinking skills, and intrinsic task motivation