Probability Matching
A decision-making strategy where individuals allocate resources proportionally to the probability of an outcome occurring, rather than optimizing the most likely outcome.
65 topics found for
“balanced decision-making”
Anchoring
Anchoring (also known as Focalism) is a cognitive bias where individuals rely heavily on the first piece of information (the "anchor") when making decisions.
Myopic Loss Aversion
A cognitive bias where individuals tend to avoid risks when they perceive potential losses more acutely than potential gains.
Availability Bias
A cognitive bias where people overestimate the importance of information that is readily available.
Surrogation
The process by which a measure or metric comes to replace the underlying objective it is intended to represent, leading to distorted decision-making.
Egocentric Bias
A cognitive bias where people rely too heavily on their own perspective and experiences when making decisions.
Ratio Bias
A cognitive bias where people judge the likelihood of an event based on its relative size rather than absolute probability.
Survivorship Bias
A cognitive bias that occurs when conclusions are drawn from a non-representative sample, focusing only on successful cases and ignoring failures.
Confirmation Bias
The tendency to search for, interpret, and remember information in a way that confirms one's preexisting beliefs or hypotheses.