Knew-It-All-Along Phenomenon

It's the common tendency for people to perceive past events as having been more predictable than they were

The phenomenonis more likely to occur when the outcome of an event is negative rather than positive. This is a phenomenon consistent with the general tendency for people to pay more attention to negative outcomes of events than positive outcomes.

Financial bubbles are often heavily biased with phenomenon after they burst. After the worldwide dot-com bubble of the late 1990s and the Great Recession of 2008, many economists have suggested that conditions that seemed insignificant at the time were harbingers of future financial collapse.

Topic: #CognitiveBiases
Source: www.wikipedia.org

Endowment effect

The endowment effect, also known as divestiture aversion, is the finding that people are more likely to retain an object they own than acquire that same object when they do not own it.

One of the most famous examples of the endowment effect in the literature is from a study by Daniel Kahneman, Jack Knetsch & Richard Thaler,[4] in which Cornell University undergraduates were given a mug and then offered the chance to sell it or trade it for an equally valued alternative (pens). They found that the amount participants required as compensation for the mug once their ownership of the mug had been established ("willingness to accept") was approximately twice as high as the amount they were willing to pay to acquire the mug ("willingness to pay").

Topic: #CognitiveBiases
Source: www.wikipedia.org

Impostor Phenomenon(reading time – 30 sec.)

Impostor phenomenon, or impostor syndrome, is a psychological phenomenon where individuals doubt their abilities and fear being exposed as frauds, despite evidence of their competence. Those experiencing it often attribute their achievements to luck or deception, downplay their skills, and dismiss positive feedback.

This phenomenon is not limited by demographics and can affect individuals in various professions and backgrounds. Impostor syndrome may lead to increased stress, anxiety, and a reluctance to pursue new opportunities. Overcoming it involves acknowledging one's accomplishments, internalizing positive feedback, and seeking support from mentors or mental health professionals.

Topic: #CognitiveBiases
Source: www.wikipedia.org

Belief Perseverance
(reading time – 30 sec.)

Belief perseverance refers to the tendency of people to cling to their existing beliefs even when presented with evidence that contradicts those beliefs. In other words, individuals may continue to maintain their initial beliefs despite encountering information that challenges or disconfirms those beliefs.

This phenomenon can be powerful and persistent because people often find it uncomfortable or threatening to change their long-held beliefs. Cognitive dissonance, a psychological theory developed by Leon Festinger, suggests that when individuals are faced with information that conflicts with their existing beliefs, they may experience discomfort. In an effort to alleviate this discomfort, they may be inclined to reject or dismiss the conflicting information, rather than adjusting their beliefs.

Topic: #CognitiveBiases
Source: www.wikipedia.org

Hindsight Bias
(reading time – 30 sec.)

Hindsight bias is the tendency to believe, after an event has occurred, that one would have predicted or expected the outcome.

For example, after a sports team wins a championship, fans and analysts may claim they knew the team would win all along, even if they didn't actually have that level of confidence before the event took place. Another example is a stock market investor who claims they knew a particular stock would rise in value after it has already gone up, even though they may not have made that investment before the rise occurred.

Hindsight bias can lead to overconfidence in one's ability to predict future events and a distorted view of past events.

Topic: #CognitiveBiases
Source: www.wikipedia.org

Curse of Knowledge
(reading time – 40 sec.)

The curse of knowledge bias occurs when individuals assume that others have the same level of understanding or knowledge as they do.

For instance, a teacher may assume that all of their students understand a concept that was just taught, when in reality some students are still struggling to grasp the idea. Another example is a technical expert who is unable to explain a complex concept in simple terms to a layman because they are too familiar with the subject and cannot imagine not knowing the information.

The curse of knowledge bias can lead to ineffective communication and poor decision-making as people overestimate others' understanding and may neglect to provide necessary clarification or details.

Topic: #CognitiveBiases
Source: wikipedia.org

Default Effect
(reading time – 30 sec.)

One example of the default effect cognitive bias is when individuals are more likely to choose the option that is set as the default in a decision-making scenario. For instance, when signing up for a new service, if opting-in to a certain feature is set as the default, people are more likely to go along with it and not change the setting, even if they might have preferred a different option if they had actively made a choice.

This highlights how people have a tendency to stick with the default option due to convenience, lack of effort, or simply not being fully aware of the implications of their choice.

Topic: #CognitiveBiases
Source: www.wikipedia.org