The field of behavioral economics has catalogued more than 100 biases and heuristics that can obstruct clear thinking or produce cognitive illusions that can lead us to misperceive the world as it really is. Rather than produce an exhaustive list here, I provide a short list of the most important ones I seem to encounter most frequently.
- Anchoring : Using the first “best guess” as a starting point for subsequent estimating.
- Availability : Recalling values that are memorable, easily accessible, recent, or extreme.
- Bandwagon bias or groupthink : Conforming one’s ...