There are many biases and heuristics that can affect our decision-making processes. Some common examples include:
- Anchoring bias: this occurs when we rely too heavily on the first piece of information we encounter when making a decision, even if that information is not particularly relevant or reliable.
- availability heuristic: this occurs when we base our decisions on information that is readily available to us, rather than considering all of the relevant evidence.
- framing effect: this occurs when the way in which information is presented influences our decisions, even if the content of the information is the same.
- confirmation bias: this occurs when we seek out information that supports our preexisting beliefs and assumptions, while ignoring or discounting information that contradicts them.
- sunk cost fallacy: this occurs when we continue to pursue a course of action because we have invested time, money, or other resources into it, even if it is no longer the best option.
- overconfidence bias: this occurs when we overestimate our ability to accurately predict outcomes or solve problems, leading us to make overly optimistic or unrealistic decisions.
- loss aversion: this occurs when we are more sensitive to potential losses than we are to potential gains, leading us to make risk-averse decisions.
- hedonic adaptation: this occurs when we quickly become accustomed to positive or negative life changes, leading us to underestimate the impact of those changes on our future happiness.
- self-serving bias: this occurs when we attribute our successes to our own abilities and efforts, while attributing our failures to external factors.
These biases and heuristics can lead us to make irrational or suboptimal decisions, as we are not always able to accurately assess all of the relevant information or consider all of the potential options. To make more effective decisions, it is important to be aware of these biases and try to compensate for them by actively seeking out diverse viewpoints, questioning our assumptions, and considering all of the relevant evidence.
