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BEHAVIORAL BIASES BOOKLET

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A simple dictionary for behavioral biases

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Page 1: Behavioral Biases Booklet

BEHAVIORAL BIASESBOOKLET

Page 2: Behavioral Biases Booklet

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This booklet is meant to serve as a reference during the behavioral research process. It is a list of relevant behavioral biases. The definitions are succinct and do not include lengthy examples or case studies. For biases that are new to the reader, other sources should be utilized to obtain more detailed explanations.

The biases are grouped into six categories & organized alphabetically to help the reader easily find the appropriate biases. The six categories include social biases, memory biases, decision-making biases, probability / belief biases, time inconsistency biases, & scarcity.

© GRID Impact

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BEHAVIORAL BIASES BOOKLET

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SOCIAL BIASES............................................................4

MEMORY BIASES.........................................................8

DECISION-MAKING BIASES......................................12

PROBABILITY / BELIEF BIASES..................................18

TIME INCONSISTENCY BIASES................................26

SCARCITY..................................................................30

INDEX........................................................................34

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BEHAVIORAL BIASES BOOKLET

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SOCIAL BIASES

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SOCIAL BIASESSOCIAL BIASES5x

Halo Effect

The tendency for a person's positive or negative traits to "spill over" from one area of their personality to another in others' perceptions of them (see also physical attractiveness stereotype).

Identity

Actor-Observer

Bias

People have multiple identities that have different preferences that lead to different choices.

The tendency for people to over-emphasize personality-based explanations for behaviors observed in others while under-emphasizing the role and power of situational influences on the same behavior.

Reciprocity People respond to positive action with another positive action, becoming friendlier and more cooperative.

Projection Bias

The tendency to unconsciously assume that others share the same or similar thoughts, beliefs, values, or positions.

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SOCIAL BIASES 6

BEHAVIORAL BIASES BOOKLET

Social Proof

Halo Effect

Social Norms

SuperiorityBias

Status QuoBias

Overestimating one's desirable qualities, and underestimating undesirable qualities, relative to other people. (Also known “better-than-average effect” or Dunning-Kruger effect)

The tendency to defend the status quo. Existing social, economic, and political arrangements tend to be preferred, and alternatives disparaged sometimes even at the expense of self or group-interest.

Self-Fulfilling Prophecy

The tendency to engage in behaviors that elicit results, which will (consciously or not) confirm existing attitudes.

Behaviors and actions that are driven by actual or perceived behavior of a peer group.

Individuals look to others to see how to behave, especially in ambiguous situations, in crises, and when others are experts.

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BEHAVIORAL BIASES BOOKLET

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MEMORY BIASES

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MEMORY BIASES9x

Consistency Bias

Hindsight Bias

Incorrectly remembering one's past attitudes and behavior as resembling present attitudes and behavior.

Filtering memory of past events through present knowledge, so that those events look more predictable than they actually were; also known as the “I-knew-it-all-along effect.”

Outcome Bias

Rosy Retrospection

Self-Serving Bias

The tendency for individuals to rate past events more positively than they had actually rated them when the event occurred.

Perceiving oneself responsible for desirable outcomes but not responsible for undesirable ones.

The tendency to judge a decision by its eventual outcome instead of by the quality of the decision at the time it was made.

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MEMORY BIASESMEMORY BIASES 10

BEHAVIORAL BIASES BOOKLET

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DECISION-MAKING BIASES

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DECISION-MAKING BIASES

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Multiple options may make it more difficult for consum-ers to select a single option.

DECISION-MAKING BIASES13x

Base Rate Fallacy Ignoring available statistical data in favor of

particulars.

Channel Factors Small but critical factors that facilitate or create

barriers for behavior.

Choice Conflict

Choice Overload

Confirmation Bias

Even with just 2 choices, a person can become paralyzed from making a choice.

Multiple options may make it more difficult for consumers to select a single option.

The tendency to search for or interpret information in a way that confirms one's preconceptions.

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DECISION-MAKING BIASES 14

BEHAVIORAL BIASES BOOKLET

DéformationProfessionnelle

The tendency to look at things according to the conventions of one's own profession, forgetting any broader point of view.

Expectation Bias

Illusion of ControlThe tendency for human beings to believe they can

control or at least influence, outcomes that they clearly cannot.

The tendency for experimenters to believe, certify, and publish data that agree with their expectations for the outcome of an experiment, and to disregard or downgrade the corresponding weightings for data that appear to conflict with those expectations.

FramingUsing an approach or description of the situation or issue that is too narrow. Also, drawing different conclusions based on how data is presented.

Denomination Effect

The tendency to spend more money when it is denominated in small amounts (e.g. coins) rather than large amounts (e.g. bills).

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DECISION-MAKING BIASESDECISION-MAKING BIASES

Loss Aversion People strongly prefer avoiding losses to acquiring

gains.

Not Invented

Here

Mental Accounting

The tendency for people to separate their money into separate accounts based on a variety of subjective criteria, like the source of the money and intent for each account

The tendency to ignore that a product or solution already exists, because its source is seen as an "enemy" or as "inferior".

Normalcy Bias The refusal to plan for, or react to, a disaster which

has never happened before.

15

Money Illusion

The tendency of people to concentrate on the nominal (face value) of money rather than its value in terms of purchasing power.

Loss Aversion People strongly prefer avoiding losses to acquiring

gains.

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DECISION-MAKING BIASES

BEHAVIORAL BIASES BOOKLET

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Post-Purchase

RationalizationThe tendency to persuade oneself through rational argument that a purchase was a good value.

Priming EffectPriming is an implicit memory effect in which exposure

to one stimulus influences a response to another stimulus.

Semmelweis ReflexThe tendency to reject new evidence that contradicts

an established paradigm.

Zero-Risk BiasPreference for reducing a small risk to zero over a

greater reduction in a larger risk.

SalienceOur attention is drawn to what is novel and seems relevant to us. Salience of an object or availability of an idea/concept is unequal to the probability of it orfrequency of it.

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PROBABILITY / BELIEF BIASES

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PROBABILITY / BELIEF BIASES

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PROBABILITY / BELIEF BIASESPROBABILITY / BELIEF BIASES19x

Ambiguity Effect

Authority Bias

Anchoring Effect

The tendency to avoid options for which missing information makes the probability seem "unknown".

The tendency to value an ambiguous stimulus (e.g., an art performance) according to the opinion of someone who is seen as an authority on the topic.

The tendency to rely too heavily, or "anchor," on a past reference or on one trait or piece of information when making decisions (also called “insufficient adjustment”).

Availability Cascade

Availability Bias

The tendency to overestimate the likelihood events with greater “availability” in memory, which can be influenced by how recent the memories are or how unusual or emotionally charged they might be.

A self-reinforcing process in which a collective belief gains more and more plausibility through its increasing repetition in public discourse (or "repeat something long enough and it will become true").

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PROBABILITY / BELIEF BIASES 20

BEHAVIORAL BIASES BOOKLET

Capability Bias

The tendency to believe that the closer average performance is to a target, the tighter the distribution of the data set will be.

Clustering Illusion

BeliefBias

Disposition Effect

Conjunction Fallacy

The tendency to see patterns where actually none exist. Gilovich example: "OXXXOXXXOXXOOOXOOXXOO"

An effect where someone's evaluation of the logical strength of an argument is biased by the believability of the conclusion.

The tendency to sell assets that have increased in value but hold assets that have decreased in value.

The tendency to assume that specific conditions are more probable than general ones.

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PROBABILITY / BELIEF BIASESPROBABILITY / BELIEF BIASES21x

Gambler’s Fallacy

Illusory Correlation

Neglect of Prior Base

Rates EffectThe tendency to neglect known odds when reevaluating odds in light of weak evidence.

The tendency to think that future probabilities are altered by past events, when in reality they are unchanged. i.e. "I've flipped heads with this coin five times consecutively, so the chance of tails coming out on the sixth flip is much greater than heads."

Beliefs that inaccurately suppose a relationship between a certain type of action and an effect.

Disregard of regression toward the

mean

Hawthorne Effect

The tendency to expect extreme performance to continue.

The tendency to make risk-averse choices if the expected outcome is positive, but make risk-seeking choices to avoid negative outcomes.

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PROBABILITY / BELIEF BIASES 22

BEHAVIORAL BIASES BOOKLET

Ostrich EffectIgnoring an obvious (negative) situation.

Positive Outcome

Bias

Overconfidence Effect

Observer Expectancy

Bias

The tendency to overestimate the probability of good things happening to them (similar to wishful thinking, optimism bias, and valence effect).

Excessive confidence in one's own answers to questions. For example, for certain types of question, answers that people rate as "99% certain" turn out to be wrong 40% of the time.

When a researcher expects a given result and there-fore unconsciously manipulates an experiment or misinterprets data in order to find it (similar to subject-expectancy effect).

Neglect of ProbabilityThe tendency to completely disregard probability

when making a decision under uncertainty.

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PROBABILITY / BELIEF BIASES23x

Stereotyping

Subadditivity Effect

Expecting a member of a group to have certain characteristics without having actual information about that individual.

The tendency to judge probability of the whole to be less than the sum of the probabilities of the parts.

Recency Effect The tendency to weigh recent events more than

earlier events.

Selection Bias A distortion of evidence or data that arises from the

way that the data are collected.

Primacy Effect The tendency to weigh initial events more than

subsequent events.

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PROBABILITY / BELIEF BIASESPROBABILITY / BELIEF BIASES 24

BEHAVIORAL BIASES BOOKLET

Subjective ValidationThe perception that something is true if a subject's

belief demands it to be true. Also assigns perceived connections between coincidences.

Survivorship Bias

The tendency to concentrate on the people or things that "survived" some process and ignoring those that didn't, or arguing that a strategy is effective given the winners, while ignoring the large amount of losers.

Well Traveled

Road EffectUnderestimation of the duration taken to traverse oft-traveled routes and over-estimate the duration taken to traverse less familiar routes.

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TIME INCONSISTENCY BIASES

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TIME INCONSISTENCY BIASES27

Present Bias Weighing present concerns more than future ones.

Procrastination Individuals postpone making decisions or taking actions (often repeatedly) because they often weigh present/ immediate decisions/ actions more than future ones.

Planning Fallacy The tendency to underestimate task-completion times

(often repeatedly and even when it's important).

Hyperbolic Discounting

Greatly discounting future costs or benefits relative to immediate costs or benefits. Our perception that the value of rewards diminishes drastically over time.

IntentionAction Gap

The disconnect between what a person wants to do and what they actually do.

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TIME INCONSISTENCY BIASESTIME INCONSISTENCY BIASES 28

BEHAVIORAL BIASES BOOKLET

Halo Effect

WillPowerThe tendency to engage in behaviors that elicit results,

which will (consciously or not) confirm existing attitudes.

The ability to restrain emotions and impulses; choosing to stick to one’s plans. It can be depleted with use but increased over time.

Self Control

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SCARCITY

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SCARCITY31x

Limited Attention Human beings have a finite amount of attention.

When split and stretched, performance can suffer.

Tunneling Devoting a great deal of bandwidth to a single scarce resource, while neglecting other things to make space for the focus.

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SCARCITY 32

BEHAVIORAL BIASES BOOKLET

Halo Effect

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INDEX

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AActor-Observer Bias..............................................Ambiguity Effect.................................................Anchoring Effect.................................................Authority Bias......................................................Availibility Bias....................................................Availibility Cascade.............................................

BBase Rate Fallacy.................................................Belief Bias...........................................................

CCapability Bias....................................................Channel Factors..................................................Choice Conflict...................................................Choice Overload.................................................Clustering Illusion...............................................Conjunction Fallacy............................................Consistency Bias...................................................Confirmation Bias...............................................

DDéformation Professionnelle..................................Denomination Effect...............................................Disposition Effect...............................................Disregard of Regression Toward the Mean........

EExpectation Bias.....................................................

FFraming................................................................

GGambler’s Fallacy....................................................

HHalo Effect..............................................................................Hawthorne Effect...................................................Hindsight Bias.........................................................Hyperbolic Discounting..........................................

51919191919

1320

2013131320209

13

14142021

14

14

21

5215

27

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COGNITIVE BIASES REFERENCE BOOK

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IIdentity..................................................................Illusion of Control...............................................Illusory Correlation..............................................

51921

LLimited Attention................................................Loss Aversion......................................................

MMental Accounting..............................................Money Illusion.....................................................

NNeglect of Prior Base Rates Effect.......................Neglect of Probability.............................................Normalcy Bias.....................................................Not Invented Here..............................................

OObserver Expectancy Bias.......................................Ostrich Effect..........................................................Outcome Bias..........................................................Overconfidence Bias...............................................

PPlanning Fallacy.....................................................Positive Outcome Bias.............................................Post Purchase Rationalization....................................Primacy Effect.........................................................Priming Effect..........................................................Present Bias............................................................Procrastination........................................................Projection Bias..........................................................

RRecency Effect........................................................

Rosy Retrospection...............................................

3115

1515

21222021

22229

22

272216231627275

23

9Reciprocity............................................................ 5

Intention Action Gap...........................................27

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S

Selection Bias......................................................Self Control.........................................................Self Fulfilling Prophecy..........................................Self Serving Bias....................................................Semmelweis Reflex..............................................Social Norms.........................................................Social Proof...........................................................Status Quo Bias.....................................................Stereotyping........................................................Superiority Bias...................................................Subadditivity Effect.............................................Subjective Validation...........................................Survivorship Bias.................................................

TTunneling.............................................................

WWell Traveled Road Effect...................................Will Power...........................................................

ZZero Risk Bias........................................................

232869

16666

1923232324

31

2428

16

Salience...............................................................16

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COGNITIVE BIASES REFERENCE BOOK

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BEHAVIORAL BIASESBOOKLET