5 Cognitive Biases That Threaten Decision-Making

5 COGNITIVE THREATEN DECISION-MAKING BIASES THAT THE ANCHORING EFFECT THE BIAS BLIND SPOT A bendency to believe one's own judgments are more objective and less susceptible bo biases Anchoring (focalism) is a tendency to refer to or rely too much on a single specific fact or opinion articulated previously. than the Judgments of ather people. ANCHORS CAN BE WRONG AND MISLEADING Thinking the facts are true il they're consistent with one's opinions. ANCHORS IN NEGOTIATIONS: BATNA AVOID THE CIRCLE OF: CUR CURRENT EMOTION Encouraging IS AN ANCHOR excess self-confidence Discussing critical figures, both higher Speaking out the figures WE TAKE RANDOM FACTS Risking to lock yourself Believing in facts consistent only with first Instead of and lower than the most desirable outcome, In a circle of blased opinions because of rejecting the fact you yourself AR PROOFB FOR DECISIOMS faking a wail-and-see attitude your opinions and in advance ignoring the ones contradicting them *BATNA stands for the Best Alternative to a are biased Negotiated Agreement THE ILLUSORY TRUTH EFFECT THE PEAK-END BIAS A tendency to remember experlences only at their most memorable moments (either pleasant or nat) as well as the final experiences. ad VOTE 1 Duration Neglect •EMOTIONS MATTER - in the course of time we re-assess our past experiences TV commercials Palitical campaigns Public figures' opinions A tanskency lo romember the overall impression belter than the durabon of the event A tendency to believe facts heard of permanently or at least froquently enough. :2 Termparal Monataniclly TO WHEN ENDUGH H's bettar not to reiterate weak IS EHOUGHT Peopla are most likaly la believe the mesage atter hearing it 3 to 5 fimes arguments to a competent critical audience - they'l spol it in an Preferring experiences wilth a tendency of positive moments to increase. even if the duration of negalive experience will have to be langer instance THE FREQUENCY ILLUSION Frequency illusion = Baader-Meinhof phenomenon A tendency to believe facts heard of permanently or at least trequently enough It happens because How Does It Work? people are able to The truth is they had already been there natwithetanding our SELECTIVE ATTENTION Of thousands things we see overy day we BUT recognize knowledge af ti remember anly 1he anes which for one raasan We didn't kmaww It before. therefore. ar another stand out from the rest patlerns didn'i notice THAT'S WHY ENCOURAGE ACTIVE LEARNINGI Yaware TimeTracker Copyright 2015 Yaware www.yaware.com