Our biased brain

1. Our Biased Brain
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2. General :
Brain is the most imporant organ of the body,
according to brain :)
Human brain capable of 1016 processes/sec
10% brain usage myth.
Status of robots.

3. Cognitive biases :
Genuine deficiency or limitation in our thinking
Cognitive biases help us process information more
efficiently, especially in dangerous situations.

4. Confirmation Bias :
We love to agree with people who agree with us.
We're put off by sources which make us feel
uncomfortable or insecure about our views

5. Ingroup Bias :
Creates bonding in ingroup
Makes us suspicious and fearful for outside group.
➔
Overestimate the abilities and value of our
immediate group at the expense of people we don't
really know.

6. Gambler's Fallacy :
Belief that previous events somehow influence
future outcomes.
Coin-tossing example
Positive expectation bias : luck has to
eventually change and that good fortune is on
the way.

7. Post-Purchase Rationalization :
Subconsciously justifying our purchases —
especially expensive ones
Principle of commitment, our psychological
desire to stay consistent and avoid a state of
cognitive dissonance.

8. Neglecting Probability :
Getting in car VS in aeroplane
Terrorist attack VS falling down from stairs
Lottery ticket probability
Leads us to overstate the risks of relatively
harmless activities, while forcing us to overrate
more dangerous ones.

9. Observational Selection Bias :
Suddenly noticing things we didn't notice before — but we
wrongly assume that the frequency has increased.
After buying new car, we notice same car more often
Feeling that the appearance of certain things or events
couldn't possibly be a coincidence (even though it is).

10. Status-Quo Bias :
If it ain't broke, don't fix it
We like to stick to our routines, political parties, and
our favorite meals at restaurants.
Assumption that another choice will be inferior or make
things worse

11. Negativity Bias :
People tend to pay more attention to bad news.
ISRO Mars mission Vs any routine news

12. Bandwagon Effect :
We love to go with the flow of the crowd.
"groupthink" or hivemind mentality
Why opinion polls are often maligned
Our built-in desire to fit in and conform

13. Projection Bias :
We tend to assume that most people think just like us —
though there may be no justification for it. Even we think
people also agree with us.

14. The Current Moment Bias :
Difficult to imagine ourselves in future and alter behavior
and expectation accordingly.
Experience pleasure in the current moment, while leaving
the pain for later.

15. Anchoring Effect :
Tendency to compare and contrast only a limited set of
items
➔
Items on sale in store and restaurant menus

16. Conclusion :
We humans are not good at taking
rational decisions, we're good at
rationalizing decisions.
Awareness

17. Further Reading :
Full List of cognitive biases :
http://en.wikipedia.org/wiki/List_of_biases_in_judgment_
Reference :
http://io9.com/5974468/the-most-commoncognitive-biases-that-prevent-you-from-beingrational

18. Created By:
Ruchir Brahmbhatt
Director,
Ecosmob Technologies Pvt. Ltd.

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20. Thank you