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A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. Individuals create their own "subjective reality" from their perception of the input. An individual's construction of reality, not the objective input, may dictate their
behavior Behavior (American English) or behaviour (British English) is the range of actions and mannerisms made by individuals, organisms, systems or artificial entities in some environment. These systems can include other systems or organisms as wel ...
in the world. Thus, cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, or what is broadly called irrationality. Although it may seem like such misperceptions would be aberrations, biases can help humans find commonalities and shortcuts to assist in the navigation of common situations in life. Some cognitive biases are presumably adaptive. Cognitive biases may lead to more effective actions in a given context. Furthermore, allowing cognitive biases enables faster decisions which can be desirable when timeliness is more valuable than accuracy, as illustrated in heuristics. Other cognitive biases are a "by-product" of human processing limitations, resulting from a lack of appropriate mental mechanisms (
bounded rationality Bounded rationality is the idea that rationality is limited when individuals make decisions, and under these limitations, rational individuals will select a decision that is satisfactory rather than optimal. Limitations include the difficulty of ...
), the impact of an individual's constitution and biological state (see
embodied cognition Embodied cognition is the theory that many features of cognition, whether human or otherwise, are shaped by aspects of an organism's entire body. Sensory and motor systems are seen as fundamentally integrated with cognitive processing. The cognit ...
), or simply from a limited capacity for information processing. A continually evolving
list of cognitive biases Cognitive biases are systematic patterns of deviation from norm and/or rationality in judgment. They are often studied in psychology, sociology and behavioral economics. Although the reality of most of these biases is confirmed by reproducible ...
has been identified over the last six decades of research on human judgment and decision-making in cognitive science, social psychology, and
behavioral economics Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals or institutions, such as how those decisions vary from those implied by classical economic theory. ...
. Daniel Kahneman and Tversky (1996) argue that cognitive biases have efficient practical implications for areas including clinical judgment, entrepreneurship, finance, and management.


Overview

The notion of cognitive biases was introduced by
Amos Tversky Amos Nathan Tversky ( he, עמוס טברסקי; March 16, 1937 – June 2, 1996) was an Israeli cognitive and mathematical psychologist and a key figure in the discovery of systematic human cognitive bias and handling of risk. Much of his ...
and
Daniel Kahneman Daniel Kahneman (; he, דניאל כהנמן; born March 5, 1934) is an Israeli-American psychologist and economist notable for his work on the psychology of judgment and decision-making, as well as behavioral economics, for which he was award ...
in 1972 and grew out of their experience of people's '' innumeracy'', or inability to reason intuitively with the greater orders of magnitude. Tversky, Kahneman, and colleagues demonstrated several replicable ways in which human judgments and decisions differ from
rational choice theory Rational choice theory refers to a set of guidelines that help understand economic and social behaviour. The theory originated in the eighteenth century and can be traced back to political economist and philosopher, Adam Smith. The theory postula ...
. Tversky and Kahneman explained human differences in judgment and decision-making in terms of heuristics. Heuristics involve mental shortcuts which provide swift estimates about the possibility of uncertain occurrences. Heuristics are simple for the brain to compute but sometimes introduce "severe and systematic errors." For example, the representativeness heuristic is defined as "The tendency to judge the frequency or likelihood" of an occurrence by the extent of which the event "resembles the typical case". The "Linda Problem" illustrates the representativeness heuristic (Tversky & Kahneman, 1983). Participants were given a description of "Linda" that suggests Linda might well be a feminist (e.g., she is said to be concerned about discrimination and social justice issues). They were then asked whether they thought Linda was more likely to be (a) a "bank teller" or (b) a "bank teller and active in the feminist movement." A majority chose answer (b). This error (mathematically, answer (b) cannot be more likely than answer (a)) is an example of the " conjunction fallacy"; Tversky and Kahneman argued that respondents chose (b) because it seemed more "representative" or typical of persons who might fit the description of Linda. The representativeness heuristic may lead to errors such as activating stereotypes and inaccurate judgments of others (Haselton et al., 2005, p. 726). Critics of Kahneman and Tversky, such as Gerd Gigerenzer, alternatively argued that heuristics should not lead us to conceive of human thinking as riddled with irrational cognitive biases. They should rather conceive rationality as an adaptive tool, not identical to the rules of formal logic or the probability calculus. Nevertheless, experiments such as the "Linda problem" grew into heuristics and biases research programs, which spread beyond academic psychology into other disciplines including medicine and political science.


Types

Biases can be distinguished on a number of dimensions. For a more complete list, see
list of cognitive biases Cognitive biases are systematic patterns of deviation from norm and/or rationality in judgment. They are often studied in psychology, sociology and behavioral economics. Although the reality of most of these biases is confirmed by reproducible ...
. Examples of cognitive biases include: * Biases specific to ''groups'' (such as the risky shift) versus biases at the individual level. * Biases that affect
decision-making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be ...
, where the ''desirability'' of options has to be considered (e.g., sunk costs fallacy). * Biases, such as illusory correlation, that affect ''judgment'' of how likely something is or whether one thing is the cause of another. * Biases that affect ''memory'', such as consistency bias (remembering one's past attitudes and behavior as more similar to one's present attitudes). * Biases that reflect a subject's ''motivation'', for example, the desire for a positive self-image leading to egocentric bias and the avoidance of unpleasant cognitive dissonance. Other biases are due to the particular way the brain perceives, forms memories and makes judgments. This distinction is sometimes described as " hot cognition" versus "cold cognition", as
motivated reasoning Motivated reasoning is the phenomenon in cognitive science and social psychology in which emotional biases lead to justifications or decisions based on their desirability rather than an accurate reflection of the evidence. It is the "tendency to ...
can involve a state of
arousal Arousal is the physiological and psychological state of being awoken or of sense organs stimulated to a point of perception. It involves activation of the ascending reticular activating system (ARAS) in the brain, which mediates wakefulness, th ...
. Among the "cold" biases, * some are due to ''ignoring relevant information'' (e.g.,
neglect of probability The neglect of probability, a type of cognitive bias, is the tendency to disregard probability when making a decision under uncertainty and is one simple way in which people regularly violate the normative rules for decision making. Small risks are ...
), * some involve a decision or judgment being ''affected by irrelevant information'' (for example the framing effect where the same problem receives different responses depending on how it is described; or the distinction bias where choices presented together have different outcomes than those presented separately), and * others give ''excessive weight'' to an unimportant but salient feature of the problem (e.g.,
anchoring An anchor is a device, normally made of metal , used to secure a vessel to the bed of a body of water to prevent the craft from drifting due to wind or current. The word derives from Latin ''ancora'', which itself comes from the Greek ἄγ ...
). The fact that some biases reflect motivation, specifically the motivation to have positive attitudes to oneself, accounts for the fact that many biases are self-serving or self-directed (e.g., illusion of asymmetric insight, self-serving bias). There are also biases in how subjects evaluate in-groups or out-groups; evaluating in-groups as more diverse and "better" in many respects, even when those groups are arbitrarily defined ( ingroup bias, outgroup homogeneity bias). Some cognitive biases belong to the subgroup of attentional biases, which refers to paying increased attention to certain stimuli. It has been shown, for example, that people addicted to alcohol and other drugs pay more attention to drug-related stimuli. Common psychological tests to measure those biases are the
Stroop task ---- ---- Naming the font color of a printed word is an easier and quicker task if word meaning and font color are congruent. If two words are both printed in red, the average time to say "red" in response to the written word "green" is ...
and the dot probe task. Individuals' susceptibility to some types of cognitive biases can be measured by the
Cognitive Reflection Test The cognitive reflection test (CRT) is a task designed to measure a person's tendency to override an incorrect "gut" response and engage in further reflection to find a correct answer; however, the validity of the assessment as a measure of "cogni ...
(CRT) developed by Shane Frederick (2005).


List of biases

The following is a list of the more commonly studied cognitive biases:


Practical significance

Many social institutions rely on individuals to make rational judgments. The securities regulation regime largely assumes that all investors act as perfectly rational persons. In truth, actual investors face cognitive limitations from biases, heuristics, and framing effects. A fair jury trial, for example, requires that the jury ignore irrelevant features of the case, weigh the relevant features appropriately, consider different possibilities open-mindedness and resist fallacies such as appeal to emotion. The various biases demonstrated in these psychological experiments suggest that people will frequently fail to do all these things. However, they fail to do so in systematic, directional ways that are predictable. In some academic disciplines, the study of bias is very popular. For instance, bias is a wide spread and well studied phenomenon because most decisions that concern the minds and hearts of entrepreneurs are computationally intractable. Cognitive biases can create other issues that arise in everyday life. One study showed the connection between cognitive bias, specifically approach bias, and inhibitory control on how much unhealthy snack food a person would eat. They found that the participants who ate more of the unhealthy snack food, tended to have less inhibitory control and more reliance on approach bias. Others have also hypothesized that cognitive biases could be linked to various eating disorders and how people view their bodies and their body image. It has also been argued that cognitive biases can be used in destructive ways. Some believe that there are people in authority who use cognitive biases and heuristics in order to manipulate others so that they can reach their end goals. Some medications and other health care treatments rely on cognitive biases in order to persuade others who are susceptible to cognitive biases to use their products. Many see this as taking advantage of one's natural struggle of judgement and decision-making. They also believe that it is the government's responsibility to regulate these misleading ads. Cognitive biases also seem to play a role in property sale price and value. Participants in the experiment were shown a residential property. Afterwards, they were shown another property that was completely unrelated to the first property. They were asked to say what they believed the value and the sale price of the second property would be. They found that showing the participants an unrelated property did have an effect on how they valued the second property.


Reducing

Because they cause
systematic error Observational error (or measurement error) is the difference between a measured value of a quantity and its true value.Dodge, Y. (2003) ''The Oxford Dictionary of Statistical Terms'', OUP. In statistics, an error is not necessarily a " mistak ...
s, cognitive biases cannot be compensated for using a wisdom of the crowd technique of averaging answers from several people.
Debiasing Debiasing is the reduction of bias, particularly with respect to Heuristics in judgment and decision-making, judgment and decision making. List of cognitive biases, Biased judgment and decision making is that which systematically deviates from the p ...
is the reduction of biases in judgment and decision-making through incentives, nudges, and training.
Cognitive bias mitigation Cognitive bias mitigation is the prevention and reduction of the negative effects of cognitive biases – unconscious, automatic influences on human judgment and decision making that reliably produce reasoning errors. Coherent, comprehensive th ...
and
cognitive bias modification Cognitive bias modification (CBM) refers to procedures used in psychology that aim to directly change biases in Cognition, cognitive processes, such as biased attention toward threat (vs. benign) stimuli and biased Interpretive bias, interpretatio ...
are forms of debiasing specifically applicable to cognitive biases and their effects. Reference class forecasting is a method for systematically debiasing estimates and decisions, based on what
Daniel Kahneman Daniel Kahneman (; he, דניאל כהנמן; born March 5, 1934) is an Israeli-American psychologist and economist notable for his work on the psychology of judgment and decision-making, as well as behavioral economics, for which he was award ...
has dubbed the
outside view Reference class forecasting or comparison class forecasting is a method of predicting the future by looking at similar past situations and their outcomes. The theories behind reference class forecasting were developed by Daniel Kahneman and Amos T ...
. Similar to Gigerenzer (1996), Haselton et al. (2005) state the content and direction of cognitive biases are not "arbitrary" (p. 730). Moreover, cognitive biases can be controlled. One debiasing technique aims to decrease biases by encouraging individuals to use controlled processing compared to automatic processing. In relation to reducing the FAE, monetary incentives and informing participants they will be held accountable for their attributions have been linked to the increase of accurate attributions. Training has also shown to reduce cognitive bias. Carey K. Morewedge and colleagues (2015) found that research participants exposed to one-shot training interventions, such as educational videos and debiasing games that taught mitigating strategies, exhibited significant reductions in their commission of six cognitive biases immediately and up to 3 months later.
Cognitive bias modification Cognitive bias modification (CBM) refers to procedures used in psychology that aim to directly change biases in Cognition, cognitive processes, such as biased attention toward threat (vs. benign) stimuli and biased Interpretive bias, interpretatio ...
refers to the process of modifying cognitive biases in healthy people and also refers to a growing area of psychological (non-pharmaceutical) therapies for anxiety, depression and addiction called cognitive bias modification therapy (CBMT). CBMT is sub-group of therapies within a growing area of psychological therapies based on modifying cognitive processes with or without accompanying medication and talk therapy, sometimes referred to as applied cognitive processing therapies (ACPT). Although cognitive bias modification can refer to modifying cognitive processes in healthy individuals, CBMT is a growing area of evidence-based psychological therapy, in which cognitive processes are modified to relieve suffering from serious depression, anxiety, and addiction. CBMT techniques are technology-assisted therapies that are delivered via a computer with or without clinician support. CBM combines evidence and theory from the cognitive model of anxiety, cognitive neuroscience, and attentional models. Cognitive bias modification has also been used to help those with obsessive-compulsive beliefs and obsessive-compulsive disorder. This therapy has shown that it decreases the obsessive-compulsive beliefs and behaviors.


Common theoretical causes of some cognitive biases

Bias arises from various processes that are sometimes difficult to distinguish. These include: *
Bounded rationality Bounded rationality is the idea that rationality is limited when individuals make decisions, and under these limitations, rational individuals will select a decision that is satisfactory rather than optimal. Limitations include the difficulty of ...
— limits on optimization and rationality ** Prospect theory ** Mental accounting ** Adaptive bias — basing decisions on limited information and biasing them based on the costs of being wrong * Attribute substitution — making a complex, difficult judgment by unconsciously replacing it with an easier judgment *
Attribution theory Attribution is a term used in psychology which deals with how individuals perceive the causes of everyday experience, as being either external or internal. Models to explain this process are called attribution theory. Psychological research into a ...
** Salience ** Naïve realism * Cognitive dissonance, and related: ** Impression management **
Self-perception theory Self-perception theory (SPT) is an account of attitude formation developed by psychologist Daryl Bem. It asserts that people develop their attitudes (when there is no previous attitude due to a lack of experience, etc.—and the emotional respon ...
* Information-processing shortcuts ( heuristics), including: ** Availability heuristic — estimating what is more likely by what is more available in memory, which is biased toward vivid, unusual, or emotionally charged examples ** Representativeness heuristic — judging probabilities based on resemblance ** Affect heuristic — basing a decision on an emotional reaction rather than a calculation of risks and benefits *
Emotion Emotions are mental states brought on by neurophysiological changes, variously associated with thoughts, feelings, behavioral responses, and a degree of pleasure or displeasure. There is currently no scientific consensus on a definition. ...
al and moral motivations deriving, for example, from: ** The
two-factor theory of emotion The two-factor theory of emotion states that emotion is based on two factors: physiological arousal and cognitive label. The theory was created by researchers Stanley Schachter and Jerome E. Singer. According to the theory, when an emotion is fel ...
** The
somatic markers hypothesis The somatic marker hypothesis, formulated by Antonio Damasio and associated researchers, proposes that emotional processes guide (or bias) behavior, particularly decision-making. '' Descartes' Error'' "Somatic markers" are feelings in the body t ...
* Introspection illusion * Misinterpretations or misuse of statistics; innumeracy. * Social influence *The brain's limited information processing capacity *Noisy information processing (distortions during storage in and retrieval from memory). For example, a 2012 '' Psychological Bulletin'' article suggests that at least eight seemingly unrelated biases can be produced by the same information-theoretic generative mechanism. The article shows that noisy deviations in the memory-based information processes that convert objective evidence (observations) into subjective estimates (decisions) can produce regressive conservatism, the belief revision (Bayesian conservatism), illusory correlations,
illusory superiority In the field of social psychology, illusory superiority is a condition of cognitive bias wherein a person overestimates their own qualities and abilities, in relation to the same qualities and abilities of other people. Illusory superiority is ...
(better-than-average effect) and worse-than-average effect,
subadditivity effect The subadditivity effect is the tendency to judge probability of the whole to be less than the probabilities of the parts. Example For instance, subjects in one experiment judged the probability of death from cancer in the United States was 18% ...
, exaggerated expectation,
overconfidence Confidence is a state of being clear-headed either that a hypothesis or prediction is correct or that a chosen course of action is the best or most effective. Confidence comes from a Latin word 'fidere' which means "to trust"; therefore, having ...
, and the
hard–easy effect The hard–easy effect is a cognitive bias that manifests itself as a tendency to overestimate the probability of one's success at a task perceived as hard, and to underestimate the likelihood of one's success at a task perceived as easy. The har ...
.


Individual differences in cognitive biases

People do appear to have stable individual differences in their susceptibility to decision biases such as
overconfidence Confidence is a state of being clear-headed either that a hypothesis or prediction is correct or that a chosen course of action is the best or most effective. Confidence comes from a Latin word 'fidere' which means "to trust"; therefore, having ...
, temporal discounting, and bias blind spot. That said, these stable levels of bias within individuals are possible to change. Participants in experiments who watched training videos and played debiasing games showed medium to large reductions both immediately and up to three months later in the extent to which they exhibited susceptibility to six cognitive biases:
anchoring An anchor is a device, normally made of metal , used to secure a vessel to the bed of a body of water to prevent the craft from drifting due to wind or current. The word derives from Latin ''ancora'', which itself comes from the Greek ἄγ ...
, bias blind spot,
confirmation bias Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms or supports one's prior beliefs or values. People display this bias when they select information that supports their views, ignoring ...
,
fundamental attribution error In social psychology, fundamental attribution error (FAE), also known as correspondence bias or attribution effect, is the tendency for people to under-emphasize situational and environmental explanations for an individual's observed behavior whil ...
, projection bias, and representativeness. Individual differences in cognitive bias have also been linked to varying levels of cognitive abilities and functions. The Cognitive Reflection Test (CRT) has been used to help understand the connection between cognitive biases and cognitive ability. There have been inconclusive results when using the Cognitive Reflection Test to understand ability. However, there does seem to be a correlation; those who gain a higher score on the Cognitive Reflection Test, have higher cognitive ability and rational-thinking skills. This in turn helps predict the performance on cognitive bias and heuristic tests. Those with higher CRT scores tend to be able to answer more correctly on different heuristic and cognitive bias tests and tasks. Age is another individual difference that has an effect on one's ability to be susceptible to cognitive bias. Older individuals tend to be more susceptible to cognitive biases and have less cognitive flexibility. However, older individuals were able to decrease their susceptibility to cognitive biases throughout ongoing trials. These experiments had both young and older adults complete a framing task. Younger adults had more cognitive flexibility than older adults. Cognitive flexibility is linked to helping overcome preexisting biases.


Criticism

Criticism against theories of cognitive biases is usually founded in the fact that both sides of a debate often claim the other's thoughts to be subject to human nature and the result of cognitive bias, while claiming their own point of view to be above the cognitive bias and the correct way to "overcome" the issue. This rift ties to a more fundamental issue that stems from a lack of consensus in the field, thereby creating arguments that can be non-falsifiably used to validate any contradicting viewpoint. Gerd Gigerenzer is one of the main opponents to cognitive biases and heuristics. Gigerenzer believes that cognitive biases are not biases, but rules of thumb, or as he would put it "
gut feelings Feelings are subjective self-contained phenomenal experiences. According to the ''APA Dictionary of Psychology'', a feeling is "a self-contained phenomenal experience"; and feelings are "subjective, evaluative, and independent of the sensation ...
" that can actually help us make accurate decisions in our lives. His view shines a much more positive light on cognitive biases than many other researchers. Many view cognitive biases and heuristics as irrational ways of making decisions and judgements. Gigerenzer argues that using heuristics and cognitive biases are rational and helpful for making decisions in our everyday life.


See also

* * * * * * * * * * * * * * * * * * * * * * * * * * *


Further reading

* * * * * * * * * * * * * *


References


External links

* *
The Roots of Consciousness: To Err Is human

Cognitive bias in the financial arena
(archived 20 June 2006)
A Visual Study Guide To Cognitive Biases
* Why smart people may be more likely to fall for fake news {{DEFAULTSORT:Cognitive Bias Cognition Decision theory Intelligence analysis