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Cognitive

Cognitive biases are systematic errors in thinking that affect human decision-making, leading to irrational choices. Common biases include confirmation bias, availability heuristic, anchoring bias, and overconfidence bias, which can impact various life aspects such as finance and relationships. To overcome these biases, individuals should recognize them, seek diverse perspectives, rely on data-driven decisions, and practice critical thinking.

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Konan Gonfa
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2 views

Cognitive

Cognitive biases are systematic errors in thinking that affect human decision-making, leading to irrational choices. Common biases include confirmation bias, availability heuristic, anchoring bias, and overconfidence bias, which can impact various life aspects such as finance and relationships. To overcome these biases, individuals should recognize them, seek diverse perspectives, rely on data-driven decisions, and practice critical thinking.

Uploaded by

Konan Gonfa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Cognitive Biases and Decision-Making: Understanding How We Think

Introduction

Human decision-making is not always rational. Cognitive biases—systematic errors in


thinking—can influence how we perceive information and make choices. Understanding
these biases can help us make more informed and logical decisions.

Common Cognitive Biases

- **Confirmation Bias**: The tendency to seek out information that supports our beliefs
while ignoring contradictory evidence.

- **Availability Heuristic**: Relying on immediate examples that come to mind rather


than looking at all available data.

- **Anchoring Bias**: Placing too much importance on the first piece of information we
receive.

- **Overconfidence Bias**: Overestimating our knowledge and abilities, leading to poor


decision-making.

### **How Biases Affect Decision-Making**

Cognitive biases can impact various aspects of life, including financial choices,
relationships, and workplace decisions. For example, an investor might stick to a bad
investment due to the sunk-cost fallacy, or a manager might favor an underqualified
employee due to the halo effect.

### **How to Overcome Cognitive Biases**

- **Be aware of biases**: Recognizing biases is the first step in overcoming them.

- **Seek diverse perspectives**: Challenge your views by considering alternative


opinions.

- **Use data-driven decisions**: Rely on objective facts instead of emotions.


- **Practice critical thinking**: Question assumptions before making important choices.

Conclusion

Cognitive biases are deeply ingrained in human thinking, but understanding them can
lead to better decision-making. By applying critical thinking and self-awareness, we can
minimize the influence of biases and make more rational choices.

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