What is Authority Bias? And not bowing down to authority Authority bias is the tendency to attribute greater accuracy to the opinion of an authority figure (unrelated to its content) and be more influenced by that opinion. In short, it is our tendency to follow the leader. More about Authority… Read More »What is Authority Bias?
What is Confirmation Bias? And murdering your darlings In the previous article about Confirmation Bias, we met the father of all fallacies. We are forced to establish beliefs about the world, our lives, the economy, investments, our careers and more. We deal mostly in assumptions, and the more nebulous these… Read More »What is Confirmation Bias? (Part 2)
A video explaining Confirmation Bias by Rolf Dobelli the author of The Art of Thinking Clearly on the IDFC Mutual Fund Youtube Channel. What is Confirmation Bias? And why you should beware of the special case Gil wants to lose weight. He selects a particular diet and checks his progress… Read More »What is Confirmation Bias? (Part 1)
WHAT IS RECIPROCITY BIAS AND WHY YOU SHOULDN’T ACCEPT FREE DRINKS Not so long ago, you may have come across disciples of the Hare Krishna sect floating around in saffron-coloured robes as you hurry to catch a flight or a train to your destination. A member of the sect presented… Read More »What is Reciprocity Bias?
WHAT IS SUNK COST FALLACY AND WHY YOU SHOULD FORGET THE PAST The film was dire. After an hour, I whispered to my wife: ‘Come on, let’s go home.’ She replied: ‘No way. We’re not throwing away $30.’ ‘That’s no reason to stay,’ I protested. ‘The money’s already gone. This… Read More »What is Sunk Cost Fallacy?
A video explaining Social Proof by Rolf Dobelli the author of The Art of Thinking Clearly on the IDFC Mutual Fund Youtube Channel. WHAT IS SOCIAL PROOF AND IF 50 MILLION PEOPLE SAYING SOMETHING FOOLISH, IT IS STILL FOOLISH You are on your way to a concert. At an intersection,… Read More »What is Social Proof?
What is Clustering Illusion? And why you see shapes in the clouds Consider the following examples: Example 1 In 1957, Swedish opera singer Friedrich Jorgensen bought a tape player to record his vocals. When he listened back to the recording, he heard strange noises throughout, whispers that sounded like supernatural… Read More »What is Clustering Illusion?
WHAT IS SWIMMER’S BODY ILLUSION AND DOES HARVARD MAKE YOU SMARTER? As essayist and trader Nassim Taleb resolved to do something about the stubborn extra pounds he’d be carrying, he contemplated taking up various sports. However, joggers seemed scrawny and unhappy, and bodybuilders looked broad and stupid, and tennis players?… Read More »What is Swimmer’s Body Illusion?
WHAT IS SURVIVORSHIP BIAS AND WHY YOU SHOULD VISIT CEMETERIES No matter where Rick looks, he sees rock stars. They appear on television, on the front pages of magazines, in concert programmes and at online fan sites. Their songs are unavoidable – in the mall, on his playlist, in the… Read More »What is Survivorship Bias?