Understanding Cognitive Biases

The video explores various psychological biases and effects that influence human perception and decision-making. It covers concepts like the illusion of transparency, empathy gap, ostrich effect, survivorship bias, hot hand fallacy, contrast effect, chauffeur knowledge, and the illusion of averages. Each section provides examples and strategies to counter these biases, helping viewers make more informed and rational decisions.

What is the Illusion of Transparency?

• Believing others can easily read your emotions

• Thinking you are invisible to others

• Assuming everyone agrees with you

• Believing you are always right

How can the Ostrich Effect impact financial decisions?

• By avoiding checking bank statements

• By investing in high-risk stocks

• By encouraging regular financial reviews

• By saving more money

What does the Contrast Effect rely on?

• Focusing on details

• Ignoring comparisons

• Comparing dissimilar items

• Comparing similar items

What is Chauffeur Knowledge?

• Knowledge gained from experience

• Knowledge shared by experts

• Superficial knowledge that appears deep

• Deep understanding of a subject

How does the Mere Exposure Effect influence preferences?

• By making new experiences more exciting

• By increasing liking through repeated exposure

• By making unfamiliar things less appealing

• By decreasing interest over time

What is the Sunk Cost Fallacy?

• Continuing a project due to past investments

• Abandoning a project despite past investments

• Investing more in a successful project

• Starting a new project with no prior investment

How does the Framing Effect alter decision-making?

• By presenting information in a neutral way

• By changing decisions based on information presentation

• By ignoring how information is presented

• By focusing only on positive information

What is the Dunning-Kruger Effect?

• Overestimating one's abilities despite lack of skill

• Underestimating one's abilities

• Ignoring feedback from others

• Accurately assessing one's abilities

What does the Zeigarnik Effect suggest about tasks?

• All tasks are remembered equally

• Tasks are forgotten once completed

• Unfinished tasks are remembered better

• Completed tasks are remembered better

What is the End of History Illusion?

• Believing you will change significantly in the future

• Believing your current self is your final version

• Believing history repeats itself

• Believing others will not change