Thursday, June 20, 2013

Our biased brains

A few goodies from Business Insider's exhaustive list, "57 Behavioral Biases That Make Us Think Irrationally"
http://www.thecrosshairstrader.com/wp-content/uploads/2013/01/thinking1-300x242.png
  • Frequency illusionWhere a word, name or thing you just learned about suddenly appears everywhere. 
  • Backfire effect:  When you reject evidence that contradicts your point of view or statement, even if you know it's true
  • Confirmation bias:  A tendency people have to believe certain information that confirms what they think or believe in.
  • Inter-group bias:  We view people in our group differently than we would someone in another group.
  • Reactance:  The desire to do the opposite of what someone wants you to do, in order to prove your freedom of choice.
  • Selective perception:  Allowing our expectations to influence how we perceive the world.
  • Hyperbolic discounting:  The tendency for people to want an immediate payoff rather than a larger gain later on. Most people would rather take $5 now than $7 in a week.