Cognitive Biases

Human minds are associative in nature, so the order in which we receive information helps determine the course of our judgments and perceptions. For instance, the first price offered for a used car sets an ‘anchor’ price which will influence how reasonable or unreasonable a counter-offer might seem. Even if we feel like an initial price is far too high, it can make a slightly less-than-reasonable offer seem entirely reasonable in contrast to the anchor price.

Be especially mindful of this bias during financial negotiations such as houses, cars, and salaries. The initial price offered has proven to have a significant effect.

When we've invested our time, money, or emotion into something, it hurts us to let it go. This aversion to pain can distort our better judgment and cause us to make unwise investments. A sunk cost means that we can't recover it, so it's rational to disregard the cost when evaluating. For instance, if you've spent money on a meal, but you only feel like eating half of it, it's irrational to continue to stuff your face just because 'you've already paid for it'; especially considering the fact that you're wasting actual time doing so.

To regain objectivity, ask yourself: had I not already invested something, would I still do so now? What would I counsel a friend to do if they were in the same situation?

How recent, emotionally powerful, or unusual your memories are can make them seem more relevant. This, in turn, can cause you to apply them too readily. For instance, when we see news reports about homicides, child abductions, and other terrible crimes it can make us believe that these events are much more common and threatening to us than is actually the case.

Try to gain different perspectives and relevant statistical information rather than relying purely on first judgments and emotive influences.

Things makes sense once they make sense, so it can be hard to remember why they didn't. We build complex networks of understanding and forget how intricate the path to our available knowledge really is. This bias is closely related to the hindsight bias wherein you will tend to believe that an event was predictable all along once it has occurred. We have difficulty reconstructing our own prior mental states of confusion and ignorance once we have clear knowledge.

When teaching someone something new, go slow and explain like they're ten years old (without being patronizing). Repeat key points and facilitate active practice to help embed knowledge.

We are primed to see and agree with ideas that fit our preconceptions, and to ignore and dismiss information that conflicts with them. You could say that this is the mother of all biases, as it affects so much of our thinking through motivated reasoning. To help counteract its influence we ought to presume ourselves wrong until proven right.

To help counteract its influence we ought to presume ourselves wrong until proven right.

“Think of your ideas and beliefs as software you're actively trying to find problems with rather than things to be defended. The first principle is that you must not fool yourself — and you are the easiest person to fool.”--Richard Feynman

Because experts know just how much they don't know, they tend to underestimate their ability; but it's easy to be over-confident when you have only a simple idea of how things are. Try not to mistake the cautiousness of experts as a lack of understanding, nor to give much credence to lay-people who appear confident but have only superficial knowledge.

“The whole problem with the world is that fools and fanatics are so certain of themselves, yet wiser people so full of doubts.” -Bertrand Russell