12 Cognitive Biases

A discussion on twelve cognitive biases, focusing on understanding each bias, its implications, and examples to illustrate.

1. Anchoring Bias

• Relies on initial information received, affecting decisions.
• Example: Car pricing - initial price sets the perception of future offers.
• Another example: Estimating the height of the tallest tree after setting an anchor.

2. Availability Heuristic Bias

• Overestimating the importance of immediate information.
• Example: Perceiving terrorism as a major threat due to media coverage, while more mundane dangers are statistically more significant.

3. Bandwagon Effect

• Adopting beliefs because others do, not out of genuine agreement.
• Examples include voting for popular candidates, or buying stocks because others do.

4. Choice-Supportive Bias

• Defending choices because they are personal.
• Example: Preferring Apple over PC due to personal purchase.

5. Confirmation Bias

• Seeking information that confirms existing beliefs.
• Example: Avoiding opposing information on the health effects of sweets.

6. Ostrich Bias

• Ignoring negative information, often subconsciously.
• Examples: Ignoring assignment deadlines or health risks from smoking.

7. Outcome Bias

• Judging decisions based on outcomes rather than initial conditions.
• Example: A manager trusting gut over team advice because the outcome was positive.

8. Overconfidence

• Confidence based on past successes, leading to neglect of facts.
• Example: Investors making decisions based on past success, ignoring real-time data.

9. Placebo Bias

• Belief in an effect causing the effect to occur.
• Example: Believing a medicine works can actually cause recovery.

10. Survivorship Bias

• Focusing on surviving information, ignoring failures.
• Example: Assuming morning habits of millionaires lead to success, ignoring those who failed despite similar habits.

11. Selective Perception

• Perceiving information based on personal beliefs or expectations.
• Example: Smokers ignoring negative ads about smoking but noticing ads about soccer.

12. Blind Spot Bias

• Underestimating one's own biases compared to others.
• Example: Teachers not acknowledging bias in grading when gifts are involved.

The video explored these biases using animations and examples curated by "Iswanoff TV" and encouraged checking out more content on similar topics for self-development.