The Most Common Biases in Business Decisions

If you’ve been following me for any length of time, you’ll know that one of topics that I write about the most is cognitive biases. So, when I came across an article on the Harvard Business Review that neatly wrapped up some of the more common biases in business decisions, I just had to comment on it. I agree …

The Sunk Cost Trap on TV: Fitzgerald Grant and Olivia Pope

A few months ago on the popular TV series “Scandal,” the fictional President of the United States fell into the sunk cost trap: We have to get Olivia back, not just because I love her, not just because having her out there is a threat to national security. There are soldiers who are never coming home …

Does Everyone Want to Attend University?

There was an op-ed in the New York Times the other week that detailed some of the economic inequality in the US. It used academic data to discuss how poorly Americans estimate the level of social mobility. It’s certainly worth reading, but I wanted to highlight one section (and study): Studies by another author of this article, …

Is “A” Really the Best Option or is it Just that It’s Better Than “B”: List of Biases in Judgment and Decision-Making, Part 18

The other day, someone was talking to me about my series on biases in judgment and decision-making and it made me realize that I was missing a rather important bias — the contrast effect! I’m not sure how this one slipped through the cracks, but I’m glad to be able to write about it for you today. It’s been almost …

The Confirmation Bias in Action: “When I Looked Closer, It’s Obvious I’m Right”

Decision-making biases are challenging, to say the least. Often times, we don’t know that they’re affecting our ability to make logical and rational decisions. The first step in combating these biases is knowing what they are. The next step would then be identifying when we use these biases. On that note, I came across a funny comic that perfectly illustrated …

A New Way to Use Pinterest: Financial Charts

I don’t remember when I first signed up for Pinterest, but I do remember that when I did, I had “big” plans of using the site to create a vision board. As you can see from my Pinterest page, I haven’t used it since I signed up. There are any number of explanations I could offer …

“Julia Lost on Jeopardy Because I Watched Live”

A few weeks ago, there was a contestant on Jeopardy that made quite a run. She didn’t break any of Ken Jennings’ records, but she certainly set a few records for females on Jeopardy. In fact, Julia Collins now has the record for the longest winning streak by a woman (and also the second longest winning streak — male or …

How You Probably Discriminate and Don’t Even Know It

Are you a part of a group at work, school, or recreationally? Well, then you’ve probably discriminated without even knowing it. A recent theoretical review of the literature concluded “ingroup favouritism is more potent than outgroup hostility” when it comes to discrimination in the United States. Meaning, preferential treatment to the people that are on your team contributes to …

Do Public Salaries Increase Performance?

With the recent news regarding Jill Abramson and the New York Times, I wanted to take a closer look at the academic literature to see if I could find something about public salaries. There’s certainly been a lot written about whether she was fired or she quit or whether it had to do with secretive salaries or her …

Why Women are Better CEOs, Presidents, and Prime Ministers

New research shows that women are far better at handling stress than men. I suppose that’s not a newsflash as most people already think that’s true, but consider the way in which this study frames it [Emphasis added]: We consistently found the same general response pattern: while stressed women showed higher self-other distinction than women …