False Consensus Effect: racist people often believe that their racist views are prevalent among their peers, even when that isn't the case., , You are pro gun control and you assume that the majority of your neighbors and co-workers are also pro gun control and would be floored to discover that some of them own guns themselves., Availability Heuristic: Changes from a wrong to right answer on a test outnumbered changes from right to wrong 2-to-1. Frustration with and memory of correct answers being changed to wrong answers causes people to think answer-changing is bad., , After seeing news stories about high-profile child abductions, you begin to believe that such tragedies are quite common. You refuse to let your child play outside by herself and never let her leave your sight, Confirmation Bias: , A woman hires a worker that turns out to be incompetent. She doesn’t notice that everyone else is doing his work for him because she is so impressed that he shows up every day, right on time., A sports fan who believes his team is the best only seems to remember the matches they won and none of the embarrassing defeats to inferior opponents., Hindsight Bias: As you are reviewing the answers to the your last exam, you could kick yourself for your silly mistakes. The correct answer is so obvious and you cannot believe that you did not pick it in the first place., , On the evening of an important NFL game, your friend predicts that the Bears are going to win by a large margin in the Championship game. In fact, the Bears to end up winning the game, causing your friend to boast "I predicted it!", , Representative Heuristic: When trying to gain a larger share of the market, a company entering that sector for the first time will often design their packaging to look very similar to the top seller. Of course, they will set their price a bit lower as well. Since the packaging similar, the product must be similar too., If someone quite young were to run for president of a country, they may have trouble getting votes despite having exceptional knowledge because they don’t fit the image we have of a president. Instead of having short grey hair and always wearing a suit, they may have longer dark hair and dress casually from time to time., While shopping in a supermarket, someone asks a person wearing a blue shirt if they know where to find cans of spaghetti. Upon further inspection, the shopper realizes the person does not work at the store but is simply wearing a shirt that is the same color that store employees wear., A nurse practitioner tells a patient who is concerned about recent unintentional weight gain that they just need to exercise more. This decision was based on the stereotype that an overweight person must be overweight because they are inactive. The nurse practitioner did not consider further workup or a blood test. Unintentional weight gain has many causes, including hormone imbalance, thyroid disease, adrenal disease, depression, heart disease, and kidney disease., Anchoring Heuristic and/or Framing Effect: If you were asked where you think Apple’s stock will be in three months, you might first say, “Okay, where’s the stock today?" Then, based on where the stock is today, you will make an assumption about where it’s going to be in three months., , If you first see a T-shirt that costs $1,200 – then see a second one that costs $100 – you're prone to see the second shirt as cheap., Belief Perseverance: Thomas believes that rich people are stuck up. His friend, Elaine, introduces him to several rich people who are not at all stuck up. Thomas still believes rich people are stuck up., A person who believes that smoking does not cause cancer despite the abundance of evidence that shows that smoking does cause cancer., Your friend has been dating a guy who treats her very badly, and while everyone around her can see this and have been telling her the same, she simply refuses to break up with him because she believes he loves her too, and he will change., Overconfidence: You often underestimates how much time it will take her to finish writing her college application essays and as a result fails to meet an important deadline., Millennium Park or “The Bean” was supposed to open in 2000 at a cost of $150 million… It opened four years late at more than triple that cost., In a study, some investors were asked to rate themselves on the basis of their investing skills. The findings of the study revealed that nearly 75 per cent of the investors have rated themselves above average, and 25 per cent of the investors have rated themselves as average, i.e., no one has rated themselves below average.,

Cognitive Biases

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