Cognitive Biases That Affect Your Decisions: Anchoring, confirmation bias, etc

We like to think our choices are logical—but psychology says otherwise. Our brains use mental shortcuts (biases) that often distort decisions. Here are a few of the biggest culprits:

🔹 Anchoring Bias – The first number you hear sticks. If a product is “$500, now $250,” you feel it’s a bargain—even if $250 was the real value all along.

🔹 Confirmation Bias – We seek info that proves us right and ignore what proves us wrong. That’s why entrepreneurs sometimes double down on bad ideas instead of pivoting.

🔹 Availability Bias – We judge risks based on what’s easy to recall. After hearing about a plane crash, flying suddenly feels unsafe—even though driving is statistically riskier.

🔹 Bandwagon Effect – “Everyone is doing it” becomes a reason to join, whether it’s a stock, a trend, or a product. Popular ≠ always smart.

🔹 Loss Aversion – We fear losing $100 more than we enjoy gaining $100. This keeps people stuck in bad deals, afraid to “cut losses.”

✅ Takeaway: Awareness is power. Spotting these biases in yourself (and others) helps you make clearer business, financial, and personal choices.

Your brain is wired to trick you—but if you learn the tricks, you ta

ke back control.