Should you be aware of the Goodhart’s law?
When a measure becomes a target, it ceases to be a good measure
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Choice Architecture
Poor choices and instant gratification
Introduction to the tendency to prioritize immediate rewards In this article, we will explore the common tendency we all have to prioritize immediate rewards over long-term benefits. It’s something that many of us can relate to – the desire for instant gratification and the temptation to choose short-term gains over long-term goals. We often find ourselves giving
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The Halo Effect. How first impressions shape our judgments
The Halo Effect is an unconscious bias that attributes overall positive qualities to someone based on a single positive trait Introduction Generalising from one positive trait to an overall positive judgments, aka “Halo Effect”. Is a powerful bias that can significantly impact our decision-making How the halo effect works The halo effect works by tapping
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Discussing the negative consequences of having too many choices and how to overcome decision paralysis
Decision paralysis: The state of being unable to make a decision due to an overwhelming number of choices Introduction In today’s world, we are faced with more choices than ever before. From the products we buy to the jobs we take to the people we date, we have a seemingly endless array of options to
The fear of making choices that could lead to negative consequences
Regret is a powerful emotion that can have a significant impact on our lives. It can lead us to avoid making decisions altogether, or to make decisions that are not in our best interests. This tendency to avoid regret is a cognitive bias known as regret aversion. Regret aversion is a bias that leads us
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Framing: How the Way We Present Information Affects Our Decision-Making
Framing describes how the way information is presented influence decision-making. It can be used to persuade people to make certain choices rather than others How it works Framing works by tapping into our cognitive biases. Cognitive biases, as we are trying to explain in all our blog posts, are mental shortcuts that we use to
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How do companies leverage the anchoring bias?
Why we, as consumers, should care about the Anchoring bias? Because most of companies are very well aware about it and they strategically leverage it to influence our perceptions of pricing and value. Many use it ethically and responsibly. Some other might spoil it. In this article we will go through 2 pricing strategies (kinda
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Exploring how default options influence decision-making
Have you ever wondered how seemingly unrelated things like the Safari browser, cookie banners, and being an organ donor all share something in common? The answer lies in their potential to become default options, shaping decision-making in ways you might not have imagined. It’s essential to recognize the profound impact default options have on our
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What is meant by Behavioral economics?
If you’ve a background in Economics, Management, or Finance, you might have encountered a field called Behavioral Economics. Now, this might sound a bit technical, but fear not! We won’t dive into complex academic discussions here. Instead, let’s explore how this fascinating field influences our behaviors and how we, in turn, impact our surroundings. Simply
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