The Hidden Traps in Decision Making

The Hidden Traps in Decision Making

1. The anchoring trap

   • Leads us to give disproportionate weight to the first information we receive

2. The status quo trap

   • Biases towards maiintaining the existing situation even when better alternatives exist

3. The sunk-cost trap

   • Inclines us to perpetuate the mistakes of the past

4. The confirming-evidence trap

   • Leads us to seek out information supporting an existing prediliction and to discount opposing information

5. The framing trap

   • Occurs when we mis-state a problem, undermining the entire decision making process

6. the overconfidence trap

   • Makes us overestimate the accuracy of our forecasts

7. The prudence trap

   • Leads us to be over-cautios when we make estimates about uncertain events

8. The recallability trap

   • Leads us to give undue weight to recent, dramatic events.