Hyperbolic Discounting Bias: What It Is & How to Avoid It

Hyperbolic Discounting Bias: What It Is & How to Avoid It

What is hyperbolic discounting bias? Why is the brain so prone to seeking immediate gratification? Hyperbolic discounting bias is the tendency to crave immediate gratification and the willingness to sacrifice an unreasonable amount of money, time, or effort for that immediacy. According to Rolf Dobelli, the author of The Art of Thinking Clearly, humans are hardwired to opt for immediate reward (in the past, it helped us survive), but more often than not, it inspires bad decisions, like paying a high amount to get something quicker. Keep reading to learn about hyperbolic discounting bias, why it happens, and how to

The Affect Heuristic in Risk-Benefit Judgment

The Affect Heuristic in Risk-Benefit Judgment

What is the affect heuristic? How does the affect heuristic influence decision-making? The affect heuristic is a mental shortcut in which your brain makes rapid subconscious judgments of like or dislike. These “affects” influence your risk-benefit analyses: If your immediate judgment is good, you’ll focus on the benefits of a situation, if the affect is bad, you’ll focus on the risks. Keep reading to learn about the affect heuristic and its implications for decision-making.

The Salience Effect: The Psychology of Attention

The Salience Effect: The Psychology of Attention

What is the salience effect? Why does the brain tend to focus on the most flashy, salient stimuli to the exclusion of everything else? As the name suggests, the salience effect is the tendency to focus on the most salient stimuli in the environment. The salience effect relies on your past experiences. You might notice certain unusual details due to, for instance, your career or past experiences, while someone else would notice different details. Keep reading to learn about the salience effect, why it occurs, and how to overcome it.

Déformation Professionnelle: The Curse of Knowledge

Déformation Professionnelle: The Curse of Knowledge

What is déformation professionnelle? How can having too much experience in your area of expertise limit your perception of the world? Déformation professionnelle is a cognitive bias resulting from having too much experience in a certain field. It is defined as a tendency to see the world through the lens of one’s profession or area of expertise. Keep reading to learn about déformation professionnelle bias, why it’s problematic, and how to overcome it.

Hindsight Bias: What It Is and Why It Happens

Hindsight Bias: What It Is and Why It Happens

What is hindsight bias? Why does the predictability of the outcome seem higher in hindsight? Hindsight bias is where you—upon knowing the outcome of an event—overestimate your ability to have predicted it. According to Rolf Dobelli, the author of The Art of Thinking Clearly, hindsight bias is a by-product of the brain’s pattern-finding tendencies. Here’s why things seem clearer in hindsight.

Sampling Distribution: Explained in Simple Terms

The Millionaire Next Door Formula for Net Worth

What is sampling distribution? What are some of the pitfalls in working with mathematical averages in math? A sampling distribution is one of the complex math concepts many people don’t instinctively understand. The sampling distribution (or the distribution of the average) is important because averages are misleading: Your brain focuses on the average and doesn’t consider possible outliers in the distribution. Keep reading to understand sampling distribution, explained in simple terms.

Social Loafing: Definition and Psychology

Social Loafing: Definition and Psychology

What is social loafing? Why do people tend to lessen their effort when added to a group? Social loading is a psychosocial phenomenon whereby individuals put less effort in when they become part of a group. According to Rolf Dobelli, the author of The Art of Thinking Clearly, social loafing is a feature of groups, not a drawback: Early humans formed groups because the responsibility for survival was spread out rather than concentrated on each individual. Keep reading for the social loafing definition, how it forms, and how to prevent it.

The Zeigarnik Effect: The Psychology of Memory

The Zeigarnik Effect: The Psychology of Memory

What is the Zeigarnik effect? Why do we tend to forget projects we are done with? In psychology, the Zeigarnik effect is the tendency to recall unfinished or interrupted tasks more easily than tasks that haven’t yet been completed. According to Rolf Dobelli, the author of The Art of Thinking Clearly, the brain does this for efficiency—once the task is complete, it deems it unimportant and discards it to free up mental space. Keep reading to learn about the Zeigarnik effect, why it happens, and how to overcome it.

The Dangers of the Sample Selection Bias

The Dangers of the Sample Selection Bias

What is self-selection bias? How does self-selection bias influence research findings? Sample selection bias is a common issue in psychological studies that involve statistical analysis. Specifically, people only join studies they’re comfortable responding to, which alters your data. Those who might provide embarrassing or somehow “undesirable” responses simply won’t take part, narrowing your study’s scope and skewing the results.  Here’s how sample selection bias skews research results and how to work around it.