Types of Biases (we often overlook)

We often overlook the basis of our daily decision making process on the effect of known, unknown and unconscious biases. Here’s a glimpse of what could be affecting us everyday:

Confirmation Bias: The inclination to favor information that aligns with pre-existing beliefs.

Example: Accepting news sources that confirm political views while dismissing opposing perspectives.

Availability Bias: Relying on easily accessible information, neglecting a comprehensive evaluation.

Example: Forming opinions about a city based on a single negative experience rather than considering a range of experiences.

Anchoring Bias: Depending heavily on the first piece of information encountered (the “anchor”) in decision-making.

Example: Negotiating prices based on an initial, possibly arbitrary, offer rather than objectively assessing value.

Hindsight Bias: Belief that an event was predictable after it has occurred.

Example: Claiming to have foreseen a stock market crash only after it has happened.

Stereotyping Bias: Applying generalized beliefs or assumptions about a group to an individual.

Example: Assuming someone is not tech-savvy because of their age or gender.

Overconfidence Bias: Excessive confidence in one’s abilities, often leading to overestimation.

Example: Traders overestimating their ability to predict market trends, resulting in financial losses.

Recency Bias: Giving more weight to recent events in decision-making.

Example: Valuing the latest performance of a sports team more than its overall season performance.

Authority Bias: Attributing greater accuracy or truthfulness to the opinions of authority figures.

Example: Accepting health advice solely because a celebrity endorses a particular wellness product.

Groupthink Bias: Seeking harmony or conformity within a group, leading to unquestioned acceptance of group decisions.

Example: A team agreeing to a flawed strategy to avoid conflict and maintain group cohesion.

The first step to minimize bias effect is to be aware and to recognise, let’s start today.

Cheers 🥂 MFR

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