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Pessimism Bias

A tendency to believe things will go wrong even when there is no evidence to support it.

Pessimism Bias

Liam had always prided himself on being a careful planner. As the head of a small but talented software development team, he was known for his caution and attention to detail. When it came time to launch a new project—a cutting-edge virtual reality gaming platform—he knew that the product had the potential to be revolutionary. But as the launch date approached, his mind was consumed by worries.

“What if the system crashes?” he thought. “What if the users don’t understand the interface? What if competitors release something similar and we’re left behind?” Even though his team had tested the platform repeatedly and customer feedback was overwhelmingly positive, Liam couldn’t shake the constant sense of impending failure.

He grew increasingly fixated on every possible risk. He delayed the release time and again, spending hours tweaking the design, updating features, and refining minor details that, in reality, were not likely to have any significant impact. His fear of a potential mishap kept him from moving forward, as he fixated on the “what-ifs” that had no evidence to support them.

Meanwhile, his competitors—who were less cautious—began to launch similar products, gaining traction in the market while Liam’s team remained stalled. Each delay added to his anxiety, further reinforcing his belief that the world wasn’t ready for their innovation and that it would fail once it was released.

Pessimism bias can cloud our judgment, making us overestimate the likelihood of negative outcomes and missing out on chances for success.

It is the tendency to believe that things will go wrong, even when there’s no solid evidence to suggest they will.

Liam’s pessimistic outlook, fueled by exaggerated fears and uncertainties, prevented him from seizing the opportunity at hand. In his case, his caution ultimately cost him precious market share.

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Scarcity Bias

Tendency to value limited or scarce resources more highly than those that are abundantly available.

Gratification Bias

Tendency to prioritizes or value short-term rewards over long-term benefits.

The Cheating Bias

Dishonest behavior by getting influenced to do so when observing others, leading to unethical practices.

Sisyphus Effect

Tendency to give up when there is no gratification or visible meaning / output to efforts.

The IKEA Effect

People tend to value an object more if they contribute to its creation.

Dunning Kruger Effect

Overestimating one’s knowledge due to a lack of understanding about the complexity of a subject.

Decoy Option Effect

Influences preferences by introducing a less attractive intermediate option, subtly steering choices towards more profitable alternatives.

Confirmation Bias

The tendency to search for, interpret, favor and recall information in a way that confirms or supports one’s prior beliefs or values.

Spotlight Effect

The tendency to believe that we are being noticed more than we really are.

Anchoring Bias

People rely heavily on the first piece of information (the “anchor”), even if it’s irrelevant.

Current Mood Bias

It is a distortion in cognition and decision making due to the present emotional state.

Prestige Bias

The tendency to favor the opinions of individuals or groups with higher social status or authority even when not in the same field.

Social Desirability Bias

Tendency to respond to or behave in a way that is socially acceptable or desirable, rather than expressing their true opinions or behaviors.

Recency Bias

The tendency to better recall recent information and events while ignoring older information.

Restraint Bias

The tendency to overestimate the level of control we have over our impulsive behaviors.

Survivorship Bias

The tendency to focus on the individuals or things that have “survived” or succeeded, while overlooking data from those that have not.

Response Bias

Tendency to provide inaccurate or false answers during surveys or interviews.

First impression Bias

The tendency to form lasting opinions based on initial experiences.

Omission Bias

Tendency to avoid taking action due to fear or uncertainty, even when not taking action could be more harmful.

Bundling Bias

The tendency of buying things that are sold together, even if we don’t need everything in the bundle. Think of this as the “package deal effect.”

Distinction Bias

In decision making, we tend to overvalue the minor differences between two almost similar options when we examine them together.

Projection Bias

Individuals overestimate the prevalence of their own thoughts, beliefs, preferences, and knowledge in others.

Salience Bias

Our tendency to focus on items or information that are more noteworthy while ignoring those that do not grab our attention.

Diversification Bias

Spreading our resources thinly across numerous options instead of concentrating on a few.

Optimism Bias

Tendency to overestimate the likelihood of positive outcomes and underestimate the negative ones.

Bandwagon Effect

It refers to our habit of adopting certain behaviors or beliefs because many other people do the same.

Framing Bias

Equivalent information can be more or less attractive depending on how it is presented, influencing our decisions.

Recall Bias

Individuals do not accurately remember past events or experiences or leave out details while reporting about them.

Group Think Bias

A group of individuals reaches a consensus without critical reasoning or evaluation of the consequences or alternatives, simply doing or agreeing because everyone else is.