Knowing this bias will help you consider other factors before making a decision. The factors that may play a role include:

To combat this anchoring bias, you should instead come up with a range of possible prices that are reasonable to you and forget the overall average price.Ĭurrently, we do not fully understand what causes this bias. For example, before buying a new car or a new house, it is very common to try to estimate what the average price is and stick to that to negotiate. The anchoring bias is the tendency to be influenced by the very first piece of information we hear, called anchor, that we adjust to before making a decision. Instead, when we judge others, we lack empathy and do not take into account all of the variables that may have played a role. We go easier on ourselves because we are aware of our thoughts and intentions. This makes a huge difference in our judgment. The test being too difficult for the level required.

Instead, when we need to justify our mistakes, we tend to attribute them to external causes, such as: When we witness other people’s actions, especially when they make a mistake, we are more likely to attribute their behavior to internal causes, such as: Even though some of the following biases are inevitable, knowing them will help you make better decisions. This article will illustrate the most common types of cognitive biases. We couldn’t possibly evaluate every single detail and possible scenario when we need to form an opinion, and this is when cognitive bias may play an important role.

This happens because our brains naturally rely on mental shortcuts in order to make decisions more quickly. You may not even realize that they are influencing you by:

General features of actor observer bias