Cognitive Biases Vocab

loss aversion

When the feeling of losing something is greater than the feeling of gaining something equal

Anchoring bias

A bias that causes us to rely heavily on the first information that were given

availability heuristic

to base the future on information that comes to mind quickly

optimism bias

to overestimate positive outcomes of our situations

Status quo bias

The constant refusal to change something because you’re comfortable in it even though it’s not benefiting you

sunk cost fallacy

reluctantly, to abandon a plan because you’re heavily invested in it

hyperbolic discounting

when we choose immediate rewards rather than long-term ones

framing effect

when we make decisions based on how information is presented into us