Most of your life is shaped by a handful of cognitive biases that you're not even aware of. It's well documented that corporations, politicians & others use these to manipulate your behavior.
1) Social Proof Bias. Also known as 'Herd Mentality'. As the name suggests, it's a bias that compels us to behave similarly to others. It's driven by at least 2 key components: Our desire to conform & belong & the assumption that the majority knows best.
2) Anchoring Effect. It's a cognitive bias that leads us to rely too heavily on a particular reference point or 'anchor'. People are most familiar with numerical anchors, for example during a price or salary negotiation. However, emotional anchors could be just as powerful.
Example: Price Anchoring It's well documented that an opening offer sets the parameters for the discussion. In fact, even when the anchor used is unreasonable, research shows that it could still influence estimated value in a negotiation.
3) Loss Aversion. We are driven more strongly by a fear of loss than a desire to achieve gain. In fact, studies suggest that the pain of losing tends to be psychologically 2x as powerful as the pleasure of gaining.
For example, that's why: Loads of us stay stuck at jobs we hate & fail to live up to our potential. We prioritize 'security' above all else. Organizations use 'free' trial periods to get you hooked on something. It then becomes difficult to give the service up.
This is also why the news, particularly the mainstream media, is dominated by negativity. The more messed up the stories, the better. For media outlets, from a views & economic standpoint: shocking crimes + wars > peace & positivity.
4) Dunning-Kruger Effect. This is the cognitive bias where people with low expertise in a certain topic tend to overestimate their ability & knowledge. The reverse is sometimes also covered: people who have achieved mastery recognize that there is plenty left to learn.
Bottom line? Stay humble. It's always day one. Whether you're just starting out or have achieved a certain degree of mastery, the key is to consistently pursue incremental improvements in your craft. Worthy crafts tend to offer an endless potential for growth & exploration.
5) Availability Heuristic. This is a mental shortcut where we place too much weight on any immediate examples that come to mind when evaluating a specific matter or topic.
6) Confirmation Bias. This is one of the most well-known cognitive biases. It stems from our tendency to process information & deal with data in a manner that confirms or supports our prior beliefs & values. It's particularly relevant for emotionally charged topics.
Confirmation bias affects almost every facet of our life. From the way social media algorithms operate to our own decision making, we are increasingly living in a bubble where being right (or perceiving ourselves as being right) takes priority over 'the' truth on any given topic.
7) Scarcity Bias. We place more value on what is scarce & less value on what is abundant. For example, you might be offered a service or product while adding a scarcity element. 'Only 10 spots left!', 'Offer expires in 3 hours!' or some other formulation. 99% of the time it's baloney. It's manipulation through the scarcity bias.
In summary, here are 7 cognitive biases to watch out for: 1) Social Proof Bias 2) Anchoring Effect 3) Loss Aversion 4) Dunning-Kruger Effect 5) Availability Heuristic 6) Confirmation Bias 7) Scarcity Bias.
4) Dunning-Kruger Effect. This is the cognitive bias where people with low expertise in a certain topic tend to overestimate their ability & knowledge. The reverse is sometimes also covered: people who have achieved mastery recognize that there is plenty left to learn.
Bottom line? Stay humble. It's always day one. Whether you're just starting out or have achieved a certain degree of mastery, the key is to consistently pursue incremental improvements in your craft. Worthy crafts tend to offer an endless potential for growth & exploration.
5) Availability Heuristic. This is a mental shortcut where we place too much weight on any immediate examples that come to mind when evaluating a specific matter or topic.
6) Confirmation Bias. This is one of the most well-known cognitive biases. It stems from our tendency to process information & deal with data in a manner that confirms or supports our prior beliefs & values. It's particularly relevant for emotionally charged topics.
Confirmation bias affects almost every facet of our life. From the way social media algorithms operate to our own decision making, we are increasingly living in a bubble where being right (or perceiving ourselves as being right) takes priority over 'the' truth on any given topic.
7) Scarcity Bias. We place more value on what is scarce & less value on what is abundant. For example, you might be offered a service or product while adding a scarcity element. 'Only 10 spots left!', 'Offer expires in 3 hours!' or some other formulation. 99% of the time it's baloney. It's manipulation through the scarcity bias.
In summary, here are 7 cognitive biases to watch out for: 1) Social Proof Bias 2) Anchoring Effect 3) Loss Aversion 4) Dunning-Kruger Effect 5) Availability Heuristic 6) Confirmation Bias 7) Scarcity Bias.
