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.

💡

Learn more about Cognitive Bias.

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

MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program.

We keep it short and provide links to high-quality websites where you can learn more about your topic.

Add MBA Brief to your desktop / iPad