Understanding Rationality and Cognitive Biases

These flashcards cover key concepts related to rationality and cognitive biases as discussed in the lecture notes.

Rationality

The quality of being reasonable and sensible; the ability to think clearly and make decisions based on logic.

Cognitive Biases

Systematic errors in thinking that affect judgments and decisions, often leading to distorted conclusions.

Rhyme as Reason Bias

The tendency to believe statements that rhyme more than those that do not rhyme.

Hot-Hand Fallacy

The belief that an individual who has experienced success in a random event is more likely to experience continued success.

Survivorship Bias

Focusing on successful entities while overlooking those that did not succeed, leading to misinterpretation of data.

Availability Bias

The tendency to overestimate the likelihood of events based on how easily examples come to mind.

Base-Rate Neglect

The failure to consider the base rates (general probabilities) when evaluating the likelihood of an event.

Framing Effect

The influence on decision-making based on how information is presented or framed.

Confirmation Bias

The inclination to seek out information that confirms one’s existing beliefs and ignore information that contradicts them.

Myside Bias

The tendency to evaluate information based on whether it supports one's own side or viewpoint, rather than its actual merits.