Seminar 1

You are mediating a dispute where one party refuses to budge from their initial settlement demand, despite substantial counteroffers. What cognitive bias is likely influencing their behaviour?

• Optimism bias

• Endowment effect

• Confirmation bias

• Polarised thinking

Answer explanation

The endowment effect often leads individuals to overvalue what they already possess, making them reluctant to accept fair offers that might require them to give something up​.

In a commercial dispute, one party consistently interprets all the information in a way that supports their own position, while ignoring evidence that contradicts it. What bias is at play here?

• • Sunk cost bias

• Anchoring bias

• Confirmation bias

• Status quo bias

Answer explanation

Confirmation bias leads people to focus on information that supports their pre-existing beliefs, dismissing evidence that might challenge their viewpoint​.

Imagine you are a mediator in a case where one party fears that any change from the current situation will result in more harm than good, even if objective evidence shows otherwise. Which bias might explain this behaviour?

• • Status quo bias

• Functional fixedness

• Reactive devaluation

• Anchoring bias

Answer explanation

Status quo bias reflects a preference for keeping things the same, often due to fear of the risks associated with change​.

In mediation, one party rejects a settlement offer simply because it was proposed by the opposing party, even though the offer is objectively reasonable. What bias is influencing this decision?

• Anchoring bias

• Endowment effect

• Reactive devaluation

• Functional fixedness

Answer explanation

Reactive devaluation occurs when a party dismisses a proposal solely because it comes from the opposing party, regardless of its fairness​.

After investing significant time and money into litigation, a party insists on continuing the case, even though settling might be the more rational decision. What cognitive bias is most likely at work?

• • Sunk cost bias

• • Endowment effect

• Confirmation bias

• Framing effect

Answer explanation

Sunk cost bias leads individuals to continue a course of action because of past investments, even when it may no longer be in their best interest​.

A lawyer is preparing for a case and, despite recognising weaknesses in their argument, remains overly confident about their chances of success. What bias might explain this?

• Optimism bias

• Anchoring bias

• • Status quo bias

• Reactive devaluation

Answer explanation

Optimism bias causes individuals to overestimate the likelihood of a positive outcome, often leading to overconfidence in their legal arguments

During a negotiation, the first offer significantly influences the direction of the discussion, and both parties seem anchored to that initial number. Which bias best explains this phenomenon?

• Anchoring bias

• • Confirmation bias

• Endowment effect

• Status quo bias

Answer explanation

Anchoring bias refers to the over-reliance on the first piece of information received, which can shape subsequent negotiations and judgments​.

In a mediation involving a complex family dispute, one participant insists that there are only two possible outcomes—either they win entirely, or they leave with nothing. What type of distorted thinking are they displaying?

• Confirmation bias

• Functional fixedness

• Polarised thinking

• Status quo bias

Answer explanation

Polarised thinking is an all-or-nothing mentality, where individuals fail to recognise the possibility of compromise​.

In the context of the moot court study, what was the relationship between the amount of time spent preparing and the participants’ confidence in the merits of their arguments?

• More preparation time increased moral confidence but not merits confidence

• • More preparation time decreased both moral and merits confidence

• • More preparation time increased confidence in both moral and merits aspects of the case

• • There was no significant relationship between preparation time and confidence in the merits of the case

Answer explanation

The study found that more time spent preparing increased moral confidence, but there was no significant effect on merits confidence​.

How does dissonance theory relate to overconfidence in legal advocacy?

• • It predicts that legal advocates will reduce their confidence when faced with contradicting evidence.

• • It suggests that advocates experience discomfort if they do not believe in their arguments and may boost their confidence to reduce this discomfort.

• • It claims that lawyers are naturally inclined to be overconfident due to their training.

• • It argues that lawyers experience cognitive balance without needing to justify their arguments.

Answer explanation

Dissonance theory suggests that lawyers who experience discomfort from not believing in their arguments will increase their confidence to reduce this internal conflict​.