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Psychological Effects and Biases

Jun 20, 2025

Overview

This lecture explores key psychological effects and cognitive biases that shape human perception, decision-making, memory, and behaviorβ€”often without conscious awareness.

Illusory Truth Effect

  • Repeating information increases belief in its truth, even if it's false.
  • Familiarity is a mental shortcut; repeated exposure tricks the brain into accepting statements as facts.
  • Examples include common myths (e.g., "we use 10% of our brains").
  • Used in propaganda, advertising, and political messaging.

Zeigarnik Effect

  • Unfinished tasks or stories linger in our minds more than completed ones.
  • Creates mental tension, boosting focus and motivation to finish.
  • Marketers use it with cliffhangers, trials, and teasers.
  • Writing unfinished tasks down can help relieve anxiety.

Reverse Psychology & Anchoring Bias

  • Telling someone not to do something increases their desire to do it (reverse psychology).
  • Anchoring bias: the first information heard sets a reference point for all future judgments.
  • Used in sales, negotiations, and first impressions.

Ben Franklin Effect & Paradox of Choice

  • People who do favors for you come to like you more (Ben Franklin effect).
  • Too many options make decision-making harder, increasing regret and dissatisfaction (Paradox of Choice).

Door-in-the-Face & Foot-in-the-Door Techniques

  • Door-in-the-face: start with a big request, then ask for a smaller one to improve compliance.
  • Foot-in-the-door: start with a small request, then escalate to larger requests.

Decoy & Scarcity Effects

  • Decoy effect: a less attractive third option steers choices toward a targeted option.
  • Scarcity effect: perceived rarity or limited availability increases desirability.

Framing & Frequency/Baader-Meinhof Effects

  • Framing: Presentation (positive vs negative) alters perception and decisions.
  • Frequency illusion: After learning something new, we notice it everywhere.

Halo & Horn Effects

  • Halo effect: One positive trait influences all judgments about a person.
  • Horn effect: One negative trait leads to an overall negative perception.

Social Influence Effects

  • Bystander effect: The more people present, the less likely anyone acts in an emergency.
  • Social proof: People mimic others, especially in uncertain situations.

Cognitive Comfort Effects

  • Mere exposure effect: Repeated exposure increases liking.
  • Cognitive dissonance: Discomfort from conflicting beliefs/actions leads to rationalizations.

Expectation Effects

  • Pygmalion effect: High expectations improve performance.
  • Golem effect: Low expectations lead to poorer performance.
  • Spotlight effect: People overestimate how much others notice them.
  • Pratfall effect: Harmless mistakes by competent people increase likability.

Emotional & Memory Effects

  • FOMO: Fear of missing out drives anxiety and impulsive behavior.
  • Hedonic treadmill: Happiness levels reset after positive or negative events.
  • Loss aversion: Fear of loss outweighs pleasure of gain.
  • Endowment effect: Ownership increases perceived value.

Knowledge & Perception Biases

  • Dunning-Kruger effect: Incompetent people overestimate abilities; experts underestimate theirs.
  • False consensus: Assuming others share your beliefs.
  • Just-world hypothesis: Belief that good/bad happens only to those who deserve it.
  • Placebo/nocebo effects: Expectations produce real positive or negative outcomes.

Memory & Attention Biases

  • Ostrich effect: Avoiding bad news to reduce stress.
  • Hindsight bias: Belief that events were predictable after they happen.
  • IKEA effect: More effort in creation increases attachment.
  • Curse of knowledge: Experts struggle to explain to beginners.
  • Serial position effect: Remembering beginnings and ends better than middles.
  • Barnum effect: Accepting vague statements as highly personal.
  • Self-fulfilling prophecy: Expectations shape reality.

Persuasion, Manipulation, and Decision Biases

  • Contrast principle: Judgments depend on what is compared.
  • Repetition persuasion: Frequent statements seem more true.
  • Fear-then-relief: Relief after fear increases compliance.
  • Sleeper effect: Weak arguments become persuasive over time.
  • Priming effect: Subtle cues influence later behavior.
  • Peak-end rule: Experiences are remembered by high points and endings.
  • Status quo & default biases: Preference to maintain current or default states.
  • Reciprocity principle: Obligation to return favors.
  • False memory effect: Memories can be distorted or fabricated.

Key Terms & Definitions

  • Illusory Truth Effect β€” Belief in information increases with repetition.
  • Zeigarnik Effect β€” Unfinished tasks stick in memory.
  • Reverse Psychology β€” Making people desire what’s forbidden.
  • Anchoring Bias β€” First information sets the standard for judgment.
  • Ben Franklin Effect β€” Doing favors makes people like you.
  • Paradox of Choice β€” Too many options hinder decision-making.
  • Decoy Effect β€” Irrelevant option steers choices.
  • Scarcity Principle β€” Rarity increases perceived value.
  • Framing Effect β€” Presentation changes perception.
  • Halo/Horn Effects β€” Single traits bias overall judgment.
  • Social Proof β€” Following group behaviors.
  • Cognitive Dissonance β€” Mental distress from conflicting beliefs.
  • Pygmalion/Golem Effects β€” High/low expectations shape performance.
  • FOMO β€” Fear of missing out.
  • Hedonic Treadmill β€” Return to baseline happiness.
  • Loss Aversion β€” Losses hurt more than gains please.
  • Endowment Effect β€” Overvaluing owned items.
  • Dunning-Kruger Effect β€” Ignorance breeds confidence.
  • Placebo/Nocebo Effects β€” Expectation causes real health effects.
  • Ostrich Effect β€” Ignoring unpleasant information.
  • Hindsight Bias β€” "Knew it all along" illusion.
  • IKEA Effect β€” Effort increases attachment.
  • Curse of Knowledge β€” Experts fail to explain to novices.
  • Serial Position Effect β€” First and last remembered best.
  • Barnum Effect β€” Vague personal statements seem accurate.
  • Self-Fulfilling Prophecy β€” Beliefs bring themselves true.
  • Contrast Principle β€” Context alters value judgments.
  • Repetition Persuasion β€” Repeats seem more true.
  • Default/Status Quo Bias β€” Preference for existing conditions.
  • Reciprocity Principle β€” Obligation to return favors.
  • False Memory Effect β€” Forming memories of things that didn’t happen.

Action Items / Next Steps

  • Review and memorize key terms and their real-life examples.
  • Reflect on which biases have influenced your own recent decisions.
  • Apply critical thinking when you notice repetition, strong emotions, or social pressure.
  • Complete any assigned readings or case studies related to cognitive bias.