Biases in Decision Making

10 Biases that distort our Decision-Making:
 
Affinity Bias - We prefer people who are similar to us. In thinking, looks, and behavior.

Reactive Devaluation - Automatically devaluing opinions from opposing sites or people you dislike. 

Illusion of Asymmetric Insight - We tend to believe our knowledge surpasses the knowledge of our peers.

False Consensus Effect - We overestimate the degree to which others agree with us.

The Ostrich Effect - The tendency to avoid negative (financial) information by pretending not to see it. 

Illusion of Validity - Our tendency to overestimate our ability to accurately interpret and predict outcomes. 

We draw conclusions to make a story coherent and then ignore possible alternatives completely. 

Hyperbolic Discounting - We are wired to prefer instant gratification. 

Even when offered significantly more in the future. 

Post-Purchase Rationalization - After a buying decision, we immediately erase all doubts and rationalize our decision.

This works combined with the confirmation bias.  

Egocentric Bias - Tendency to ascribe oneself more responsibility for success than others or outside factors (e.g. luck or circumstance). 

Pro-Innovation Bias - The tendency to overweight the possible usefulness and oversee risks

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