Tuesday, May 9, 2017

Shiller's "Brain Bugs" w/ Bonus Picture

Reading through "Finance and the Good Society" by Robert J. Shiller, though the actual "bugs" first appeared in "Irrational Exuberance." I thought this was worth sharing (from page 181):

  • Anchoring, a tendency to be influenced by extraneous cues when in ambiguous circumstances
  • A tendency to be overly influenced by storytelling, particularly human-interest stories
  • Overconfidence, particularly in ego-involving judgements
  • Nonconsequentialist reasoning, a difficulty in thinking thorugh the array of hypothetical events that could potentially occur in the future
  • Social influence, a tendency to adopt the attitudes of others around us without realizing we are doing so.
Bonus: A list of cognitive biases. There's plenty of graphical representations of these all over the internet; I'm only posting this one in particular because it's the one I happened across most recently. None of this is "new" information, and some are repeats of the above list:

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