Related Biases
- Overconfidence bias often serves to increase the effects of escalating commitment - causing decision makers to refuse to withdraw from a losing situation, or to continue to throw good money, effort, time and other resources after bad investments.
- People often tend to ignore base rates or undervalue their effect. For example, if one is competing against individuals who are already winners of previous competitions, one's odds of winning should be adjusted downward considerably. People tend to fail to do so sufficiently.
Read more about this topic: Overconfidence Effect
Famous quotes containing the words related and/or biases:
“A parent who from his own childhood experience is convinced of the value of fairy tales will have no difficulty in answering his child’s questions; but an adult who thinks these tales are only a bunch of lies had better not try telling them; he won’t be able to related them in a way which would enrich the child’s life.”
—Bruno Bettelheim (20th century)
“A critic is a bundle of biases held loosely together by a sense of taste.”
—Whitney Balliet (b. 1926)
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