COGNITIVE BIAS REPORT

COGNITIVE BIAS REPORT

Introduction Cognitive Bias Report I created this cognitive bias report, because I have found studying our cognitive biases to be extremely helpful in facilitating a life of freedom (aka resilience). If you don't know what your weaknesses are, then how can you truly grow? Many of us operate in life, making easily preventable errors due to subtle ways of processing information. Errors that if we would have known how to evaluate ourselves for certain biases; could have easily saved a lot of time, money, and effort. I have compiled a list of what I believe are some of the most important cognitive biases; as Psychological Athletes we must understand our mind's tendencies. I am confident that if you make an inventory of these biases, you will definitely experience more ease in life. My gift to you...enjoy! What are Cognitive Biases? A cognitive bias is a type of error in thinking that occurs when we are processing and interpreting information in the world around us. Cognitive biases are often a result of our attempt to simplify our processing. They are rules of thumb that help us make sense of the world and reach decisions with relative speed. Where the issue comes along, is that many of the biases served a purpose in the past. Our mental processing, has not yet evolved to deal with more contemporary interaction. Therefore our minds; often unbeknownst to us, ends up processing information incorrectly. This leads to us being easy manipulated by our environment, and passively reacting, rather than proactively responding. 4 Main Categories: Decision-Making & Behavior Probability & Belief Social Memory ( I will not cover in this report )

Why are they helpful to know? While knowing the bias do not protect us from them (majority of these biases are subconscious); the knowledge of them allows us to understand ourselves better while shining light upon biased beliefs and thoughts that may be invading, and preventing us from making choices that are in line with our true desires. Using our knowledge of the cognitive biases, we can adjust our decisions to better suit our true desires, and we can take back our control by not being easily manipulated by our environment, and emotions. Decision Making & Behavior Biases Confirmation Bias our tendency to search for information that confirms our prior beliefs. Often ignoring those beliefs that do not. I once heard Charlie Munger humorously say, that the human mind is like the female egg. When one sperm get in, there is an automatic shut-off device that blocks other sperm from getting it. Tip: Avoid extreme ideology. Be open to proving your ideas wrong. Congruence Bias our tendency to test our hypothesis through direct measures, rather than testing for other alternatives The famous man with a hammer syndrome, highlights this bias. To the man with a hammer everything looks like a nail. Meaning if all you have is 1 way of doing things, or 1 ideology, you try to solve every problem with that 1 way. Tip: Try to argue for all sides. EX: How could the republicans be correctt? How could the democrats be correct?, etc. Contrast Bias our tendency to perceive something in a positive light or negative light after comparing it to a contrasting object. Example: Obama versus Bush; Honda Civic versus Lamborghini The reason this bias is faulty is that just because Bush appeared obnoxious, and Obama appeared calm; doesn't automatically mean that Obama would be a great alternative. Just because a Lamborghini costs more, and drives faster, doesn't automatically mean it is a better alternative to the Honda Civic. Déformation professionnelle our tendency to view things in everyday life

according to the constructs of our professions, and not considering any broader views. Hyperbolic Discounting our tendency to have preference for immediate payoffs rather than long term investments. Doubt Avoidance our tendency to want to avoid doubt by coming to quick decisions. This is also called risk aversion. This bias often leads to ideology, stereotypes, and discrimination. Our amygdala creates short-cuts in our processing so that when we encounter something, we can label it and know how to respond. We make quick; oftentimes uninformed, decisions to help decrease anxiety from the unknown. Mere Exposure Effect our tendency to exaggerate our liking of something just because of familiarity This bias combines a few of the previous mentioned biases. Test yourself. Honestly ask yourself this...if you were searching on YouTube for how to make pancakes..and their were a number of videos of people of various races. All the videos looked equally interesting, and informative. Do you think you would automatically select the video from the person of your race, or no? If you answered no, were you already familiar with the race of the person in the video? Now, there is no cookie-cutter way of evaluating this bias, but understand familiarity plays a huge role in our day to day operations. Oftentimes people or businesses who are unfamiliar to us do not get the time of day. There are a lot of valid reasons for this, and there are quite a few invalid ones too. Unit Bias our tendency to want to finish a given unit of task, even if it no longer serves us. Example: Completing a Bachelors Degree when we had determined in our second year that was we were studying wasn't what we wanted to do. Or Finishing a plate of food, even though we are already satiated. This bias also combines with the consistency bias. Zero Risk Bias our preference in reducing a smaller risk to zero, rather than reducing a larger risk; which has bigger impact.

Example: A person wants to get lean and vascular. They decide to lower their fats, rather than lowering their carbohydrates(the most abundantly available macronutrient), even though the former, would be the option with the most impact. Probability & Belief Biases Conjunction Fallacy tendency to assume specific conditions are more probable than general ones. Anchoring the tendency to rely heavily on a past reference of information when making decisions Man with a hammer syndrome. Anthropic Bias the tendency for evidence to be based on ones selective observation. Example: Someone argues, every night I come home you are reading ; therefore all you do is read all day. Observer-Expectancy Effect the tendency to expect a result, and therefore unconsciously manipulate a situation to seek that result. Texas Sharpshooter Fallacy the tendency to construct a hypothesis or change a hypothesis after data is collected. Primary Bias the tendency to weigh initial effects more than subsequent events. Social Biases Herd Instinct the tendency to adopt the opinions and behaviors of others in order to avoid conflict Illusion of Transparency overestimating our abilities to know others, and others abilities to know us Ingroup the tendency to give preference to others that are perceive to be part of our group Outgroup Homogeneity Bias the tendency to see members of our own group

as more varied in contrast to outside groups Projection Bias the tendency to believe others share the same beliefs, thoughts, and values as we do. Self-Fullfilling Prophecy the tendency to engage in behaviors that will result in confirmation of our beliefs. Ultimate Attribution Error when behaviors of other groups are judged as flaws in character; while behavior in our groups are based on circumstances. Conclusion There you have it. 22 biases we face. I bet there were some biases that you could pinpoint your use of in the past, or even in the present. That is great! I want us to remain students to life and embrace the scientists in us. Please, if you can do me one favor, continue to dissect your mind, never feel as though you have reached, always remain a student to life. - The Mindset Warrior Resources: http://rationalwiki.org/wiki/list_of_cognitive_biases Feedback: Feedback is always welcomed, and appreciated. Want to add your input? Email me at: mindsetwarrior@gmail.com