18 Cognitive Bias Examples Show Why Mental Mistakes Get Made
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18 Cognitive Bias Examples Show Why Mental Mistakes Get Made
Here are 18 of the most common mental mistakes in business and investing. Make sure to learn from these cognitive bias examples to make better decisions.
Mar 3, 2018
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How to Avoid Cognitive Bias
The sunk cost fallacy is a cognitive bias where we continue a behavior or endeavor as a result of previously invested resources—like time, money, or effort. In relationships, this becomes a powerful emotional trap. Your brain seeks to avoid the pain of regret and the feeling that your investment was a "waste." So, it encourages you to double down, believing that future reward will eventually justify the past sacrifice. Understanding this pattern can help you make decisions based on your present
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