Why do people go crazy on Black Fridays? What makes someone pick a PC over a Mac? How do we prioritize our actions? To know the answers to these questions, you would have to know the 25 cognitive biases.

What Are Cognitive Biases?

Evolutionary psychology and anthropology propose that the vast majority of human behaviors are based on adaptations from the past. Like Richard Lee said in his famous book Man the Hunter: “Cultural man has been on Earth for some 2 million years; for near 99% of this period he has lived as a hunter-gatherer.”

Although we’re living in a modern world, our physiology and psychology still operate as if we’re in the savannah. That’s why sugar and fat taste so good. And why you get anxious in uncomfortable situations.

Charlie Munger is a businessman and an investor. He has created a list of the 25 cognitive biases that influence our behavior and decision making in some way. Keep in mind that not all of them are correct all the time. But they’re still subconscious programs that we’re hardwired to exhibit.

Knowing your cognitive biases will help you understand your own nature better, prevent making impulsive decisions and persuade others. It can help you to escape your mind’s matrix.

The 25 Cognitive Biases Explained

Bias 1 – Reward and Punishment Tendency

Everyone is motivated to do something if they can gain from it, right. Money, recognition, a good feeling. But everyone is also motivated to do something or avoid doing it if there are punishments. Like cancer, bankruptcy or embarrassment.

Bias 2 – Liking and Loving Tendency

We ignore the faults and flaws of people or products if we like or love them. Even if the mistake is unforgivable, we’re easier to accept it if it’s done by our favorite brand or an attractive person.

Bias 3 – Disliking and Hating Tendency

We ignore the virtues and positive aspects of people we dislike. We just hate them because…Also, we blindfold ourselves to the facts and opinions of others.

Bias 4 – Doubt and Avoidance Tendency

We hate uncertainty. If we are unsure about a decision, we try to quickly remove any doubt by making a hasty decision so that we could be certain again.

Bias 5 – Inconsistency and Avoidance Tendency

We have a reluctance to change ourselves and our habits. Our brain tries to conserve energy by being reluctant to change, which is a way of avoiding inconsistency.

Bias 6 – Curiosity Tendency

Curiosity to learn continuously. We also want to know how the story ends. And that’s why every episode of Game of Thrones ends with you pulling your hair out. You just can’t wait to see what happens next.

Bias 7 – Kantian Fairness Tendency

It’s the Golden Rule – Treat others like you would like to be treated. You accept that life isn’t fair. Yet, you tolerate a little unfairness if it means greater fairness for all. The example Munger uses is letting in other drivers on the freeway knowing they will reciprocate in the future.

Bias 8 – Envy and Jealousy Tendency

Envy and jealousy come from the need to get access to scarce resources. This happens when the object of desire is seen in possession of someone else.

“It is not greed that drives the world, but envy”– Warren Buffet

Bias 9 – Reciprocation Tendency

We want to return the favor to someone who helps us. This is also reflected in the anthropologists’ Marcel Mauss’ book The Gift. So, next time you ask someone for a favor, know that they’re expecting you to reciprocate in the future.

Bias 10 – Influence from Mere Association Tendency

We can be easily manipulated by mere association. It can be a group of people, the quality of a product, advertising, etc.

That’s why brands use famous people to promote their products – we instantly think that Nikes will make us godlike in basketball just because Michael Jordan wore them.

Bias 11 – Simple, Pain-Avoiding Psychological Denial

We have a habit of distorting the facts until they become bearable for our own views. It’s easier to lie to yourself right now than it is to face change and uncertainty. You start changing your bad habits only when you have an emergency or you get sick.

Bias 12 – Excessive Self-Regard Tendency

We all think we’re above average. We’re smarter, more attractive, more persuasive than we really are. This is where overconfidence comes from. Munger says the greatest type of pride should be taking pride in being trustworthy to avoid developing an ego.

Bias 13 – Over-Optimism Tendency

This bias shows that we tend to be more optimistic in any situation than we have reasons to be.

Bias 14 – Deprival-Superreaction Tendency

This is loss aversion. You much rather prefer to avoid losing something than gaining something.

Bias 15 – Social Proof Tendency

You look at other people, their status, group-think, to think and act as they do.

Bias 16 – Contrast-Misreaction Tendency

We misunderstand comparisons and can thus make poor decisions. This is why you will always buy the item that’s on sale because you perceive it to be a bargain even if it’s not. It’s better to evaluate objects and people by themselves not by their contrasts.

Bias 17 – Stress-Influence Tendency

We will act faster and get more extreme reactions if adrenaline is running through our body. Some stress is good but too much of it will actually be bad.

Bias 18 – Availability-Misweighing Tendency

We overweight what’s easily available. Our brain starts working with what it has the easiest access to. That’s why you will more likely eat fast food right now instead of wait for something healthy later.

Bias 19 – Use It Or Lose It Tendency

What you don’t use you lose. You lose your skills if you don’t use them.

Bias 20 – Drug-Misinfluence Tendency

You’re prone to do drugs and get addicted to them. Alcohol, caffeine, cigarettes, cocaine or any other mind-altering substances included.

Bias 21 – Senescence-Misinfluence Tendency

As we age there is a natural loss of certain skills and abilities. You’re not as strong or mentally sharp as you used to be. Continuous thinking and learning help to slow the decay by promoting neuroplasticity.

Bias 22 – Authority-Misinfluence Tendency

You tend to follow orders from higher authority figures just because they say so.

A great example is the Milgram experiment. The test subjects kept giving a guy electric shocks because the authority figure in the room said so. These results show that a lot of people are willing to obey even if they’re causing serious injury and distress.

Bias 23 – Twaddle Tendency

This is basically spending too much time on nonsense. Facebook news feed, Netflix,

Bias 24 – Reason Respecting Tendency

Some people just want the answers, not the reasons or a better understanding. There’s a study where a person jumps in front of a line and succeeds just because they say the word ‘because.’ Example: “Can I cut in front of you because my bus leaves in 5 minutes?” OR “Can I get right in front of you BECAUSE I think I’m a better person than you?” And the answer will most likely be: “Of course!.”

Bias 25 – Lollapalooza Tendency

If several of your cognitive biases start working together, they will have a much greater effect. Extreme outcomes occur. The Milgram experiment is a prime example of your brain kicking into overdrive under pressure.

Avoid Falling Victim to These

Cognitive Biases

These are all the 25 cognitive biases and there are probably a lot more of them. Keep in mind that they don’t always apply to every situation. Some people exhibit some biases more whereas others do so less.

How to avoid falling victim to these cognitive biases?

You want to develop meta-awareness and mindfulness. This way you can first recognize the presence of your own blindspots and remain aware of your daily decision making.

That’s what I do with my blog as well. I create content about nutrition, meditation, and overall personal development. To get my free e-book about optimizing your body and mind click here!

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Stay Empowered

Siim