Influences Of Cognitive Biases On Decision Making
TEAMWORK 2
The influence of Cognitive biases on decision making process
Team member: Maréva Pautonnier, Mylène Zicry, Ermin Rejzovic, Pierre Picault,
Wang Yushu, Zhu Yizhen
1. Introduction and definition
Cognitive biases are patterns of thinking whose goal is to acquire information by making experiences in according to an opinion or idea that we consider correct. Thinking of our experiences, we distinguish the perception, evaluation and logic interpretation mistakes.
Cognitive biases were first identified by Amos Tversky and Daniel Kahneman. The variety of biases touches wide areas such as: memory, statistical reasoning and social attribution. Moreover, biases are common to all individuals but these biases may change in relation to the culture.
2. Different types and examples of cognitive biases
2.1 Different types of cognitive biases
There are different kinds of cognitive biases,such as:
-Action biases : Reflect excessive optimism, overconfidence or failure to integrate potential responses to your organization.
-Interest biases : Self-serving recommendations or attachment to previous products or plans.
-Pattern recognition biases : This includes confirmation bias, when individuals over-weight evidence favorable to their recommendation and disregard or under-value evidence that contradicts their opinions.
-Stability biases : Such as aversion to loss or fear of change.
-Social biases : Like for consensus or following the leader.
2.2 Popular examples of cognitive biases
We will now see different examples of cognitive biases:
-Bandwagon effect : The tendency to do like other because they think or believe like that.
-Loss aversion : the tendency for people to prefer avoiding losses over acquiring gains.
-Selective perception : the tendency for expectations to affect perception.
-Anchoring : the tendency to rely too heavily on one trait or piece of information when making decisions
3. Influences of cognitive biases on decision making process
In the
The influence of Cognitive biases on decision making process
Team member: Maréva Pautonnier, Mylène Zicry, Ermin Rejzovic, Pierre Picault,
Wang Yushu, Zhu Yizhen
1. Introduction and definition
Cognitive biases are patterns of thinking whose goal is to acquire information by making experiences in according to an opinion or idea that we consider correct. Thinking of our experiences, we distinguish the perception, evaluation and logic interpretation mistakes.
Cognitive biases were first identified by Amos Tversky and Daniel Kahneman. The variety of biases touches wide areas such as: memory, statistical reasoning and social attribution. Moreover, biases are common to all individuals but these biases may change in relation to the culture.
2. Different types and examples of cognitive biases
2.1 Different types of cognitive biases
There are different kinds of cognitive biases,such as:
-Action biases : Reflect excessive optimism, overconfidence or failure to integrate potential responses to your organization.
-Interest biases : Self-serving recommendations or attachment to previous products or plans.
-Pattern recognition biases : This includes confirmation bias, when individuals over-weight evidence favorable to their recommendation and disregard or under-value evidence that contradicts their opinions.
-Stability biases : Such as aversion to loss or fear of change.
-Social biases : Like for consensus or following the leader.
2.2 Popular examples of cognitive biases
We will now see different examples of cognitive biases:
-Bandwagon effect : The tendency to do like other because they think or believe like that.
-Loss aversion : the tendency for people to prefer avoiding losses over acquiring gains.
-Selective perception : the tendency for expectations to affect perception.
-Anchoring : the tendency to rely too heavily on one trait or piece of information when making decisions
3. Influences of cognitive biases on decision making process
In the