the science of decision making

relative

value of things is “relative” to their context rather than absolute

arbitrary coherence

value can be ascribed randomly through association

bandwagon effect

tendency to do things because many other people do the same

bias blind spot

tendency not to compensate for one’s own cognitive biases

even when told you are biased you will underestimate the effects

choice-supportive bias

tendency to retroactively ascribe positive attributes to an option one has selected

other adults are more likely than younger adults to show choice-supportive bias

related to cognitive dissonance

confirmation bias

tendency to search for or interpret information in a way that confirms one’s preconceptions

choice is often unconscious and quick, this can be seen as making these unconscious choices make sense

congruence bias

tendency to test hypotheses exclusively through direct testing

people generally ignore alternative hypotheses

focusing effect

placing too much importance on one aspect of an event

ex) using odometer readings to value a used car over maintenance records

hyperbolic discounting

people generally prefer smaller, sooner payoffs to larger, later payoffs

when same payoffs are distant in time, people tend to prefer the larger even though the time lag from the smaller to the larger would be the same as before

information bias

tendency to seek information even when it cannot affect action

information that is not worth knowing is not worth acquiring

more exposure effect

tendency for people to express undue liking for things merely because they are familiar with them

status quo bias

tendency for people to like things to stay relatively the same

von restorff effect

tendency for an item that stands out like a sore thumb to be more likely to be remembered than other items

zero-risk bias

preference for reducing a small risk to zero over a greater reduction in a larger risk

prefer small benefits that are certain to large ones that are uncertain