The Behavioural Biases Of Individuals

The Behavioural Biases Of Individuals

There are two types of Behavioural biases :

1 . Cognitive Errors

2. Emotional Bias

Cognitive Errors

Cognitive Errors are due to error in informational processing , statistical errors and memory errors .

There are two types of Cognitive Errors . Belief based and informational processing based .

Belief Perseverance Bias

1. Conservatism

2. Confirmation

3. Representativeness

4. Illusion Of Confidence

5. Hindsight

Information Processing Bias

1. Anchoring

2. Adjustment

3. Mental Accounting

4. Framing

5. Availability

Emotional Biases

Emotional biases are due to impulse and intuition, influenced by feelings.

1. Loss Aversion

2. Overconfidence

3. Self control

4. Status quo

5. Endowment

6. Regret Aversion

How To Handle Biases

1. Recognize & Accept

2, Adjust for Bias

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