{"id":42963,"date":"2021-11-03T15:32:03","date_gmt":"2021-11-03T19:32:03","guid":{"rendered":"https:\/\/www.andysowards.com\/blog\/?p=42963"},"modified":"2021-11-03T15:32:05","modified_gmt":"2021-11-03T19:32:05","slug":"types-of-bias-affecting-your-decision-making","status":"publish","type":"post","link":"https:\/\/www.andysowards.com\/blog\/2021\/types-of-bias-affecting-your-decision-making\/","title":{"rendered":"Types of Bias Affecting Your Decision Making"},"content":{"rendered":"\n

As much as you might like to believe that you are a rational being whose decisions are founded purely on facts and logic, the truth is that most people are influenced by all sorts of inconsequential variables when they make decisions. Consider this well-known study<\/a>, which found that judges are dramatically more likely to be lenient in their sentencing after lunch; though their job is to make impartial decisions based on the facts before them, most judges can\u2019t help but succumb to unrecognized biases.<\/p>\n\n\n\n

Fortunately, by knowing about potential biases you might have, you can limit their effect on your ability to make sound decisions. Here are a few common types of biases plaguing many people and why they shouldn\u2019t impact your decision-making process.<\/p>\n\n\n\n

Survivorship Bias<\/strong><\/h2>\n\n\n\n
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The Thinking Ladder<\/figcaption><\/figure>\n\n\n\n

Likely, you love reading about the most profitable companies and what makes them tick, about startups that made it big, about small businesses that are thriving and why. Yet, you probably almost never seek out stories of when businesses crash and burn.<\/p>\n\n\n\n

The survivorship bias is a bias of seeing only success, to the point of ignoring failure. This can provide you with a sense of unwarranted optimism, that you will certainly achieve victory. However, recognizing the possibility of failure and planning for it is an important element of making good decisions.<\/p>\n\n\n\n

Confirmation Bias<\/strong><\/h2>\n\n\n\n
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