The Behavioural Biases Of Individuals
There are two types of Behavioural biases :
1 . Cognitive Errors
2. Emotional Bias
Cognitive Errors
Cognitive Errors are due to error in informational processing , statistical errors and memory errors .
There are two types of Cognitive Errors . Belief based and informational processing based .
Belief Perseverance Bias
1. Conservatism
2. Confirmation
3. Representativeness
4. Illusion Of Confidence
5. Hindsight
Information Processing Bias
1. Anchoring
2. Adjustment
3. Mental Accounting
4. Framing
5. Availability
Emotional Biases
Emotional biases are due to impulse and intuition, influenced by feelings.
1. Loss Aversion
2. Overconfidence
3. Self control
4. Status quo
5. Endowment
6. Regret Aversion
How To Handle Biases
1. Recognize & Accept
2, Adjust for Bias