Cognitive Bias


Definition: Cognitive Bias is a broad term for all distortions in the human mind that are hard to avoid and that lead to a perception, judgment, or reliability that deviates systematically, involuntarily, and rather distinct from the "reality".
Main causes of CB are bounded rationality and the limited information processing capacity of the brain.
CB is particularly relevant in decision making, whether in groups or individual.



More on cognitive bias. More on individual decision making: Anchoring Bias, Bayesian Theory, Black Swan Theory, Bounded Rationality, Cognitive Dissonance, more...


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