Heuristics and Cognitive Bias
| Heuristics are “mental shortcuts” that make thinking easier, such as a rule of thumb, or past experience. But they can lead to cognitive biases.
Examples are: - Frequency illusion: When shopping for car, a Tesla for example….you tend to see them everywhere, but didn’t notice before.
- Confirmation bias: We look for and notice messages about our preferred best food, best car make, etc., but discount information that is contrary to our beliefs.
- Anchoring bias: The tendency to be overly influenced by the first piece of information we receive. The first number voiced during a price negotiation become the anchoring point for all further negotiations.
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