Hello! Today I want to recommend you another book which can help in developing critical thinking. It summarizes information of homo sapiens living from the evolution of archaic human species in the Stone Age up to the twenty-first century
#Books
#Books
Endowment Effect
(reading time – 50 sec.)
The endowment effect is the bias and perception that the personal ownership of an object exceeds any listed market value.
One of the most famous examples of the endowment effect in the literature is from a study by Daniel Kahneman in which participants were given a mug and then offered the chance to sell it or trade it for an equally valued alternative (pens).
They found that the amount participants required as compensation for the mug once their ownership of the mug had been established ("willingness to accept") was approximately twice as high as the amount they were willing to pay to acquire the mug ("willingness to pay").
Topic: #CognitiveBiases
Source: Wikipedia
(reading time – 50 sec.)
The endowment effect is the bias and perception that the personal ownership of an object exceeds any listed market value.
One of the most famous examples of the endowment effect in the literature is from a study by Daniel Kahneman in which participants were given a mug and then offered the chance to sell it or trade it for an equally valued alternative (pens).
They found that the amount participants required as compensation for the mug once their ownership of the mug had been established ("willingness to accept") was approximately twice as high as the amount they were willing to pay to acquire the mug ("willingness to pay").
Topic: #CognitiveBiases
Source: Wikipedia
Default effect
(reading time – 40 sec.)
The Default effect is a tendency to choose the default option when you are given a choice between several ones.
For example, scientific studies carried out regarding the relation of the Default Effect on organ donation found that there are less donors in countries where consent is not given by default. If you are simply put on the organ donor list by default because you haven’t actively expressed that you do not wish to be one then you probably would never even really consider this. Whereas if you were asked to actively give your consent then you would be more prone to start thinking about it in detail and might become more emotionally involved and less likely to agree.
Topic: #CognitiveBiases
Source: tactics.convertize.com
(reading time – 40 sec.)
The Default effect is a tendency to choose the default option when you are given a choice between several ones.
For example, scientific studies carried out regarding the relation of the Default Effect on organ donation found that there are less donors in countries where consent is not given by default. If you are simply put on the organ donor list by default because you haven’t actively expressed that you do not wish to be one then you probably would never even really consider this. Whereas if you were asked to actively give your consent then you would be more prone to start thinking about it in detail and might become more emotionally involved and less likely to agree.
Topic: #CognitiveBiases
Source: tactics.convertize.com
Denomination effect
(reading time – 20 sec.)
The denomination effect is a form of cognitive bias relating to currency, suggesting people may be less likely to spend larger currency denominations than their equivalent value in smaller denominations.
The effect occurs because large denominations are regarded as less fungible – that is, psychologically less replaceable with equivalent notes – than smaller denominations, the researchers said.
Topic: #CognitiveBiases
Source: ezonomics.com
(reading time – 20 sec.)
The denomination effect is a form of cognitive bias relating to currency, suggesting people may be less likely to spend larger currency denominations than their equivalent value in smaller denominations.
The effect occurs because large denominations are regarded as less fungible – that is, psychologically less replaceable with equivalent notes – than smaller denominations, the researchers said.
Topic: #CognitiveBiases
Source: ezonomics.com
Dunning-Kruger effect
(reading time – 20 sec.)
The Dunning-Kruger effect occurs where people fail to adequately assess their level of competence — or specifically, their incompetence — at a task and thus consider themselves much more competent than everyone else. This lack of awareness is attributed to their lower level of competence robbing them of the ability to critically analyse their performance, leading to a significant overestimation of themselves.
In simple words it's "people who are too ignorant to know how ignorant they are".
Topic: #CognitiveBiases
Source: rationalwiki.org
(reading time – 20 sec.)
The Dunning-Kruger effect occurs where people fail to adequately assess their level of competence — or specifically, their incompetence — at a task and thus consider themselves much more competent than everyone else. This lack of awareness is attributed to their lower level of competence robbing them of the ability to critically analyse their performance, leading to a significant overestimation of themselves.
In simple words it's "people who are too ignorant to know how ignorant they are".
Topic: #CognitiveBiases
Source: rationalwiki.org
Bounded Rationality
(reading time – 20 sec.)
The idea that in decision-making, people are limited by the information they have, the cognitive limitations of their minds, and the finite time. As a result, they seek for a “good enough” decision and tend to make a satisficing (rather than maximizing or optimizing) choice.
For example, during shopping when people buy something that they find acceptable, although that may not necessarily be their optimal choice.
Topic: #CognitiveBiases
Source: Wikipedia
(reading time – 20 sec.)
The idea that in decision-making, people are limited by the information they have, the cognitive limitations of their minds, and the finite time. As a result, they seek for a “good enough” decision and tend to make a satisficing (rather than maximizing or optimizing) choice.
For example, during shopping when people buy something that they find acceptable, although that may not necessarily be their optimal choice.
Topic: #CognitiveBiases
Source: Wikipedia
Projection bias
(reading time – 45 sec.)
In behavioral economics, projection bias refers to people’s assumption that their tastes or preferences will remain the same over time.
We may have learned from experience not to go to the supermarket when we are hungry – we tend to buy all kinds of junk that we don’t normally eat or want to eat, and not only is our bill higher than normal but we also end up with stuff we don’t consume or don’t want to consume. This happens because at the time of shopping we incorrectly anticipate that our future hunger will be as great as it is now.
Topic: #CognitiveBiases
Source: Wikipedia
(reading time – 45 sec.)
In behavioral economics, projection bias refers to people’s assumption that their tastes or preferences will remain the same over time.
We may have learned from experience not to go to the supermarket when we are hungry – we tend to buy all kinds of junk that we don’t normally eat or want to eat, and not only is our bill higher than normal but we also end up with stuff we don’t consume or don’t want to consume. This happens because at the time of shopping we incorrectly anticipate that our future hunger will be as great as it is now.
Topic: #CognitiveBiases
Source: Wikipedia
Illusory correlation
(reading time – 40 sec.)
In psychology, illusory correlation is the phenomenon of perceiving a relationship between variables (typically people, events, or behaviors) even when no such relationship exists.
This, for exmaple, can occur when people judge whether two events, such as pain and bad weather, are correlated. They rely heavily on the relatively small number of cases where the two events occur together. People pay relatively little attention to the other kinds of observation (of no pain or good weather)
Topic: #CognitiveBiases
Source: Wikipedia
(reading time – 40 sec.)
In psychology, illusory correlation is the phenomenon of perceiving a relationship between variables (typically people, events, or behaviors) even when no such relationship exists.
This, for exmaple, can occur when people judge whether two events, such as pain and bad weather, are correlated. They rely heavily on the relatively small number of cases where the two events occur together. People pay relatively little attention to the other kinds of observation (of no pain or good weather)
Topic: #CognitiveBiases
Source: Wikipedia
Base Rate Fallacy
(reading time – 50 sec.)
Base rate neglect is the tendency for people to mistakenly judge the likelihood of a situation by not taking into account all relevant data.
Lots of food companies exploit the Base Rate Fallacy on their packaging. When something says "50% extra free," only a third (33%) of what you're looking at is free. If you think half of what you're looking at is free, then you've committed the Base Rate Fallacy. For example, when you buy six cans of Coke labelled "50% extra free," only two of the cans are free, not three. (It's because the original pack had four cans, and 50% of the original amount is two cans.)
Topic: #CognitiveBiases
Source: howtogetyourownway.com
(reading time – 50 sec.)
Base rate neglect is the tendency for people to mistakenly judge the likelihood of a situation by not taking into account all relevant data.
Lots of food companies exploit the Base Rate Fallacy on their packaging. When something says "50% extra free," only a third (33%) of what you're looking at is free. If you think half of what you're looking at is free, then you've committed the Base Rate Fallacy. For example, when you buy six cans of Coke labelled "50% extra free," only two of the cans are free, not three. (It's because the original pack had four cans, and 50% of the original amount is two cans.)
Topic: #CognitiveBiases
Source: howtogetyourownway.com
Attentional bias
(reading time – 40 sec.)
Attentional bias is the tendency for people's perception to be affected by their recurring thoughts at the time.
For example, smokers tend to possess a bias for cigarettes and other smoking-related cues around them, due to the positive thoughts they've already attributed between smoking and the cues they were exposed to while smoking.
Topic: #CognitiveBiases
Source: Wikipedia
(reading time – 40 sec.)
Attentional bias is the tendency for people's perception to be affected by their recurring thoughts at the time.
For example, smokers tend to possess a bias for cigarettes and other smoking-related cues around them, due to the positive thoughts they've already attributed between smoking and the cues they were exposed to while smoking.
Topic: #CognitiveBiases
Source: Wikipedia
Groupthink
(reading time – 1 min.)
Groupthink is a psychological phenomenon that occurs when decisions are made due to the unified nature of decision-makers. It happens when the decision-makers strive for unanimity, and this overrides their motivation to consider alternative views. As a result, independent thinking is lost.
As an example consider the bombing of Pearl Harbor. Many of the senior officers at Pearl Harbor did not take warnings from Washington DC about potential invasion seriously despite the fact that Japanese messages had been intercepted. Those who didn't take action believed that the Japanese wouldn't dare to attempt an assault against the U.S. because they would recognize the futility of war with the United States.
Topic: #CognitiveBiases
Source: Wikipedia
(reading time – 1 min.)
Groupthink is a psychological phenomenon that occurs when decisions are made due to the unified nature of decision-makers. It happens when the decision-makers strive for unanimity, and this overrides their motivation to consider alternative views. As a result, independent thinking is lost.
As an example consider the bombing of Pearl Harbor. Many of the senior officers at Pearl Harbor did not take warnings from Washington DC about potential invasion seriously despite the fact that Japanese messages had been intercepted. Those who didn't take action believed that the Japanese wouldn't dare to attempt an assault against the U.S. because they would recognize the futility of war with the United States.
Topic: #CognitiveBiases
Source: Wikipedia
Band Wagon Effect
(reading time – 40 sec.)
Band Wagon Effect is a cognitive bias which explains the impulse to choose certain option or follow particular behaviour, because other people are doing it. This leads to a dangerous cycle, as more people continue to follow a trend makes it more likely that other people hop on the band wagon.
For example, people might buy a new electronic item because of its popularity, regardless of whether they need it, can afford it or even really want it.
Topic: #CognitiveBiases
Source: investopedia.com
(reading time – 40 sec.)
Band Wagon Effect is a cognitive bias which explains the impulse to choose certain option or follow particular behaviour, because other people are doing it. This leads to a dangerous cycle, as more people continue to follow a trend makes it more likely that other people hop on the band wagon.
For example, people might buy a new electronic item because of its popularity, regardless of whether they need it, can afford it or even really want it.
Topic: #CognitiveBiases
Source: investopedia.com
Scarcity bias
(reading time – 1 min.)
The more difficult it is to acquire an item the more value that item has. When there is only a limited number of items available. The rarer the opportunity, the more valuable it is.
People assume that things that are difficult to obtain are usually better than those that are easily available. They link availability to quality. On “Black Friday”, more than getting a bargain on a hot item, shoppers thrive on the competition itself, in obtaining the scarce product.
In a famous study, one group of participants were given a jar with ten cookies, a second group was given two cookies, and a third group was initially given ten cookies, which were then reduced to two cookies. when asked the participants to rate their cookies, the third group rated their cookies the highest.
Topic: #CognitiveBiases
Source: Wikipedia
(reading time – 1 min.)
The more difficult it is to acquire an item the more value that item has. When there is only a limited number of items available. The rarer the opportunity, the more valuable it is.
People assume that things that are difficult to obtain are usually better than those that are easily available. They link availability to quality. On “Black Friday”, more than getting a bargain on a hot item, shoppers thrive on the competition itself, in obtaining the scarce product.
In a famous study, one group of participants were given a jar with ten cookies, a second group was given two cookies, and a third group was initially given ten cookies, which were then reduced to two cookies. when asked the participants to rate their cookies, the third group rated their cookies the highest.
Topic: #CognitiveBiases
Source: Wikipedia
Begging The Question
(reading time – 1 min.)
You presented a circular argument in which the conclusion was included in the premise.
This logically incoherent argument often arises in situations where people have an assumption that is very ingrained, and therefore taken in their minds as a given. Circular reasoning is bad mostly because it's not very good.
Example: The word of Zorbo the Great is flawless and perfect. We know this because it says so in The Great and Infallible Book of Zorbo's Best and Most Truest Things that are Definitely True and Should Not Ever Be Questioned.
Topic: #LogicalFallacy
Source: yourlogicalfallacyis.com
(reading time – 1 min.)
You presented a circular argument in which the conclusion was included in the premise.
This logically incoherent argument often arises in situations where people have an assumption that is very ingrained, and therefore taken in their minds as a given. Circular reasoning is bad mostly because it's not very good.
Example: The word of Zorbo the Great is flawless and perfect. We know this because it says so in The Great and Infallible Book of Zorbo's Best and Most Truest Things that are Definitely True and Should Not Ever Be Questioned.
Topic: #LogicalFallacy
Source: yourlogicalfallacyis.com
Complexity bias
(reading time – 1 min.)
Complexity bias is the belief that complex solutions are better than simple ones.
The term denotes an irrational preference for complexity over simple approaches that are faster, cheaper and safer.
The following are common examples:
Jargon
The assumption that someone knows what they are talking about because they use obscure terminology and big words.
Math
The assumption that complex math must be accurate and more valuable than a qualitative insight.
Software
A preference for highly complex software to satisfy requirements that are comparatively simple.
Topic: #CognitiveBiases
Source: simplicable.com
(reading time – 1 min.)
Complexity bias is the belief that complex solutions are better than simple ones.
The term denotes an irrational preference for complexity over simple approaches that are faster, cheaper and safer.
The following are common examples:
Jargon
The assumption that someone knows what they are talking about because they use obscure terminology and big words.
Math
The assumption that complex math must be accurate and more valuable than a qualitative insight.
Software
A preference for highly complex software to satisfy requirements that are comparatively simple.
Topic: #CognitiveBiases
Source: simplicable.com
Backfire Effect
(reading time – 1 min.)
The effect is claimed to be that when, in the face of contradictory evidence, established beliefs do not change but actually get stronger.
This happens for example when corporations know that they are doing something that is harmful but nonetheless promote denialism.
The corporation can even publicly admit that their product is harmful while simultaneously covertly funding astroturf groups that promote the denialist message. Examples of this coverup behavior include the asbestos industry, the tobacco industry, the sugar industry, and the fossil fuel industry with regard to global warming.
Topic: #CognitiveBiases
Source: rationalwiki.org
(reading time – 1 min.)
The effect is claimed to be that when, in the face of contradictory evidence, established beliefs do not change but actually get stronger.
This happens for example when corporations know that they are doing something that is harmful but nonetheless promote denialism.
The corporation can even publicly admit that their product is harmful while simultaneously covertly funding astroturf groups that promote the denialist message. Examples of this coverup behavior include the asbestos industry, the tobacco industry, the sugar industry, and the fossil fuel industry with regard to global warming.
Topic: #CognitiveBiases
Source: rationalwiki.org
The Fundamental Attribution Error
(reading time – 1 min.)
The Fundamental Attribution Error is similar to the Self-Serving Bias, in that we look for contextual excuses for our failures, but generally blame other people or their characteristics for their failures. It also may stem from the Availability Heuristic in that we make judgments based only on the information we have available at hand.
One of the best textbook examples of this integrates stereotyping: Imagine you are driving behind another car. The other driver is swerving a bit and unpredictably starts speeding up and slowing down. You decide to overtake them (so as to no longer be stuck behind such a dangerous driver) and as you look over, you see a female behind the wheel. The Fundamental Attribution Error kicks in when you make the judgment that their driving is poor because they’re a woman (also tying on to an unfounded stereotype). But what you probably don’t know is that the other driver has three children yelling and goofing around in the backseat, while she’s trying to get one to soccer, one to dance and the other to a piano lesson. She’s had a particularly tough day and now she’s running late with all of the kids because she couldn’t leave work at the normal time. If we were that driver, we’d judge ourselves as driving poorly because of these reasons, not because of who we are.
Topic: #CognitiveBiases
Source: www.psychologytoday.com
(reading time – 1 min.)
The Fundamental Attribution Error is similar to the Self-Serving Bias, in that we look for contextual excuses for our failures, but generally blame other people or their characteristics for their failures. It also may stem from the Availability Heuristic in that we make judgments based only on the information we have available at hand.
One of the best textbook examples of this integrates stereotyping: Imagine you are driving behind another car. The other driver is swerving a bit and unpredictably starts speeding up and slowing down. You decide to overtake them (so as to no longer be stuck behind such a dangerous driver) and as you look over, you see a female behind the wheel. The Fundamental Attribution Error kicks in when you make the judgment that their driving is poor because they’re a woman (also tying on to an unfounded stereotype). But what you probably don’t know is that the other driver has three children yelling and goofing around in the backseat, while she’s trying to get one to soccer, one to dance and the other to a piano lesson. She’s had a particularly tough day and now she’s running late with all of the kids because she couldn’t leave work at the normal time. If we were that driver, we’d judge ourselves as driving poorly because of these reasons, not because of who we are.
Topic: #CognitiveBiases
Source: www.psychologytoday.com
Order effects
(reading time – 1 min.)
We tend to focus on first-order effects, not second- or third-order effects – If I wreck my car, I’m most likely to be upset about my wrecked car (first-order effect), not how I’m going to pick up my kids from school each day or how higher insurance premiums will affect my monthly budget (second-order effects), even though the second- and third-order effects will have a bigger impact on my life than the damaged car.
Much of the analysis on coronavirus stops at the first-order effects. “Stay healthy, wash your hands, you’re going to be fine.” But the second and third-order effects of this could potentially be quite large. Just one example: the US healthcare system is utterly broken. Roughly 60% of Americans can’t afford to pay for an unexpected emergency and 10% of Americans don’t have health insurance at all.
Topic: #CognitiveBiases
Source: markmanson.net
(reading time – 1 min.)
We tend to focus on first-order effects, not second- or third-order effects – If I wreck my car, I’m most likely to be upset about my wrecked car (first-order effect), not how I’m going to pick up my kids from school each day or how higher insurance premiums will affect my monthly budget (second-order effects), even though the second- and third-order effects will have a bigger impact on my life than the damaged car.
Much of the analysis on coronavirus stops at the first-order effects. “Stay healthy, wash your hands, you’re going to be fine.” But the second and third-order effects of this could potentially be quite large. Just one example: the US healthcare system is utterly broken. Roughly 60% of Americans can’t afford to pay for an unexpected emergency and 10% of Americans don’t have health insurance at all.
Topic: #CognitiveBiases
Source: markmanson.net
The Normalcy Bias
(reading time – 30 sec.)
The belief that things will continue to function in the future as it has always function in the past.
It’s leading us to underestimate the probability of a disaster occurring and its potential effects. The normalcy bias causes people to refuse to plan or react to disasters that they have never faced before.
For example Donald Trump said:
“By April, when it gets a little warmer, it miraculously goes away”.
But it’s already June and you see its consequences
Topic: #CognitiveBiases
Source: medium.com
(reading time – 30 sec.)
The belief that things will continue to function in the future as it has always function in the past.
It’s leading us to underestimate the probability of a disaster occurring and its potential effects. The normalcy bias causes people to refuse to plan or react to disasters that they have never faced before.
For example Donald Trump said:
“By April, when it gets a little warmer, it miraculously goes away”.
But it’s already June and you see its consequences
Topic: #CognitiveBiases
Source: medium.com
The Google Effect
(reading time – 30 sec.)
Also known as “digital amnesia”, the aptly named Google Effect describes our tendency to forget information that can be easily accessed online.
First described in 2011 by Betsy Sparrow (Columbia University) and her colleagues, their paper described the results of several memory experiments involving technology.
In one experiment, participants typed trivia statements into a computer and were later asked to recall them. Half believed the statements were saved, and half believed the statements were erased. The results were significant: participants who assumed they could look up their statements did not make much effort to remember them.
Topic: #CognitiveBiases
Source: visualcapitalist.com
(reading time – 30 sec.)
Also known as “digital amnesia”, the aptly named Google Effect describes our tendency to forget information that can be easily accessed online.
First described in 2011 by Betsy Sparrow (Columbia University) and her colleagues, their paper described the results of several memory experiments involving technology.
In one experiment, participants typed trivia statements into a computer and were later asked to recall them. Half believed the statements were saved, and half believed the statements were erased. The results were significant: participants who assumed they could look up their statements did not make much effort to remember them.
Topic: #CognitiveBiases
Source: visualcapitalist.com