Search results
Results from the WOW.Com Content Network
Plan continuation bias, failure to recognize that the original plan of action is no longer appropriate for a changing situation or for a situation that is different from anticipated. [68] Subadditivity effect, the tendency to judge the probability of the whole to be less than the probabilities of the parts. [69]
In 1996, Elton, Gruber, and Blake showed that survivorship bias is larger in the small-fund sector than in large mutual funds (presumably because small funds have a high probability of folding). [8] They estimate the size of the bias across the U.S. mutual fund industry as 0.9% per annum, where the bias is defined and measured as:
The planning fallacy is a phenomenon in which predictions about how much time will be needed to complete a future task display an optimism bias and underestimate the time needed. This phenomenon sometimes occurs regardless of the individual's knowledge that past tasks of a similar nature have taken longer to complete than generally planned.
Unconscious bias can be a significant barrier to achieving the diversity needed for a continually successful business or organization. Working from 'a hidden bias' A few of many possible examples ...
When it comes to money, it always helps to take a step back, acknowledge your emotions and weigh the risks and rewards. Hear an expert's take on 8 common mindsets that could be holding you back ...
The negativity bias, [1] also known as the negativity effect, is a cognitive bias that, even when positive or neutral things of equal intensity occur, things of a more negative nature (e.g. unpleasant thoughts, emotions, or social interactions; harmful/traumatic events) have a greater effect on one's psychological state and processes than neutral or positive things.
Confirmation bias can also lead to escalation of commitment as individuals are then less likely to recognize the negative results of their decisions. [7] On the other hand, if the results are recognized, they can be blamed on unforeseeable events occurring during the course of the project. The effect of sunk costs is often seen escalating ...
Status quo bias has been attributed to a combination of loss aversion and the endowment effect, two ideas relevant to prospect theory.An individual weighs the potential losses of switching from the status quo more heavily than the potential gains; this is due to the prospect theory value function being steeper in the loss domain. [1]