Survivorship bias: when failure gets forgotten

We all know that one chain-smoker who lived an old, healthy life. We read everyday about Steve Jobs, Bill Gates and Mark Zuckerberg—college dropouts who started billion-dollar companies. And we tend to attribute our own success to dedication rather than luck. These are all typical examples of survivorship bias. Survivorship bias is a common bias …

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How to practice nuanced thinking

“This is just wrong.” How many times have you heard that phrase during a heated conversation? Such categorical statements never seem to help in coming to an agreement, or at least to create opportunities to learn. Whether at an interpersonal level or at a broader scale, a lack of nuanced thinking can have a significant …

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Negativity bias: how negative experiences cloud our judgement

Have you ever found yourself ruminating over a mistake you made a while ago? Replaying in your head a conversation that didn’t go so well? That’s the negativity bias at play: not only do we register negative stimuli more readily, but we also tend to dwell on these events for longer. In general, negative events …

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The empathy gap: why we underestimate the influence of emotions

“I would do much better!” you think, watching someone give a presentation about a topic you are familiar with. “I don’t feel like smoking at all, I’ll definitely be able to quit tomorrow,” you say with a relaxed tone, right after smoking a cigarette. These are illustrations of the empathy gap: our tendency to underestimate …

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The planning fallacy: why we underestimate how long a task will take

“I’ll be here in ten minutes,” you tell your friend on the phone while hurrying to put your shoes on. “We are aiming to launch at the end of year,” confidently tells the project manager to their boss. We have all been guilty of being overoptimistic when predicting how long a task will take. That’s …

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The Dunning–Kruger effect: you don’t know what you don’t know

Why do ignorant folks tend to overestimate the extent of their knowledge? How do incompetent people often seem to be unaware of how deficient their expertise is? Turns out, we are not very good at evaluating ourselves accurately. And one of the most obvious manifestations of this psychological deficiency is the Dunning–Kruger effect, the cognitive …

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Confirmation bias: believing what you see, seeing what you believe

“The eye sees only what the mind is prepared to comprehend.” — Robertson Davies. A person who thinks women are bad drivers is more likely to notice driving mistakes made by women. A detective who is convinced a suspect is guilty is more likely to pay attention to evidence corroborating their intuition. And, while someone …

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Cognitive biases in entrepreneurship: a research report

Scenario 1 – Joe and Jane decided to play a game in which they toss a coin a few times. Every time a head came up, Joe had to give Jane $10 and every time a tail came up, Jane had to give Joe $10. They could toss the coin any number of times they …

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The curse of knowledge

Have you ever had a teacher who was very smart, but also terrible at actual teaching? An expert who used so much jargon you could not quite follow their explanation? This is called the “curse of knowledge”, a term coined in 1989 by economists Colin Camerer, George Loewenstein, and Martin Weber. It’s a cognitive bias …

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