Johan Raslan

The Most Important Biases and Heuristics: 1. Incentive-Caused Bias - We guide people in the direction of our interest. 2. Recency Bias - We tend to put too much weight on recent events. 3. Anchoring - Our judgment is heavily screwed by the first information we are given about something. 4. Regression - We love to see cause-effect relationships where none exist. Everything, always, regresses to its mean! 5. Hindsight Bias - In retrospect, events seem more predictable than they actually were. 6. Halo Effect - You either like or dislike everything about someone or something. Nothing in between. 7. Loss Aversion - Losses weigh twice as much as the equivalent gain. Because of that, we reject gambles where chance would favor us. 8. Commitment Bias - We have a tendency to remain committed to our past behaviors and opinions. Particularly when expressed publicly, even if they do not have desirable outcomes. 9. WYSIATI - What you see is all there is. You can't consider what you don’t know. Paradoxically, knowing less also increases your confidence about being right. 10. Illusion of Skill - We regularly confuse luck with skill because we solely focus on outcomes. 11. Consistency Bias - We avoid inconsistencies and rather remain on the wrong path.