What is the Hot-Hand Fallacy? The Hot-Hand Fallacy occurs when people mistakenly attribute short-term success to skill, ability, or some inherent quality, rather than recognizing that luck, chance, and randomness play a significant role. This bias leads individuals to overestimate their own abilities, as well as those of others, based on limited samples of performance. […]
Cognitive Biases: Gambler’s Fallacy
What is the Gambler’s Fallacy? The Gambler’s Fallacy occurs when people assume that a random process will correct itself in the short term, resulting in an unrealistic expectation of future outcomes. This bias is rooted in the misunderstanding of probability and randomness. In reality, each event in a sequence of independent trials (such as coin […]
Cognitive Biases: G.I. Joe Fallacy
What is the G.I. Joe Fallacy? The G.I. Joe Fallacy occurs when people assume that possessing more information or knowledge about a situation will directly lead to improved decision-making outcomes. However, this assumption neglects the complexities of uncertainty and probability. Even with perfect knowledge, there are still limitations to predicting outcomes due to inherent uncertainties […]
Cognitive Biases: Escalation of Commitment Effect
What is the Escalation of Commitment Bias? The Escalation of Commitment bias arises when individuals become overly attached to a decision due to the resources they have already committed. This attachment leads them to continue investing in the decision, even if new information suggests that it may not be the best course of action. The […]
Cognitive Biases: Berkson’s Paradox
What is Berkson’s Paradox? Berkson’s Paradox occurs when two variables are correlated in a hospital or clinical setting, but the correlation disappears or even reverses when the analysis is restricted to patients with specific conditions. In other words, the paradox arises when a correlation between two variables appears strong within a selected population (e.g., hospital […]
Cognitive Biases: Distinction Effect
What is the Distinction Bias? The Distinction Bias refers to the tendency for people to exaggerate the importance of small differences between options when evaluating them side by side. This bias leads individuals to overemphasize the distinctions between alternatives, even if these differences are relatively minor or insignificant in the grand scheme of things. History […]
Cognitive Biases: Denomination Effect
What is the Denomination Effect? The Denomination Effect refers to the way in which the physical denomination of currency influences our perception of its value and our willingness to spend it. In other words, people tend to treat different denominations of money differently, even if they have the same face value. History of the Denomination […]
Cognitive Biases: Default Effect
What is the Default Effect? The Default Effect is a cognitive bias that describes the tendency for people to stick with the default option or setting when faced with a decision. This phenomenon was first identified by psychologist Eric Johnson and his colleagues in 1993, who found that people tend to choose the default option […]
Minecraft Server
I started a Minecraft Server, something I can do to raise money and pay for server costs. Macdaddy4sure.ai
Cognitive Biases: Decoy Effect
What is the Decoy Effect? The Decoy Effect refers to a phenomenon where the presence of an additional option (the “decoy”) influences our preference for one of two existing options. This effect can manifest in various ways, including: Origins and explanations The Decoy Effect has its roots in various psychological theories: Examples and illustrations To […]