Vocabulary

Anchoring

The bias to be affected by an initial anchor, even if the anchor is arbitrary, and to insufficiently adjust our judgments away from that anchor.

Biases

The systematic and predictable mistakes that influence the judgment of even very talented human beings.

Bounded awareness

The systematic ways in which we fail to notice obvious and important information that is available to us.

Bounded ethicality

The systematic ways in which our ethics are limited in ways we are not even aware of ourselves.

Bounded rationality

Model of human behavior that suggests that humans try to make rational decisions but are bounded due to cognitive limitations.

Bounded self-interest

The systematic and predictable ways in which we care about the outcomes of others.

Bounded willpower

The tendency to place greater weight on present concerns rather than future concerns.

Framing

The bias to be systematically affected by the way in which information is presented, while holding the objective information constant.

Heuristics

cognitive (or thinking) strategies that simplify decision making by using mental short-cuts

Overconfident

The bias to have greater confidence in your judgment than is warranted based on a rational assessment.

System 1

Our intuitive decision-making system, which is typically fast, automatic, effortless, implicit, and emotional.

System 2

Our more deliberative decision-making system, which is slower, conscious, effortful, explicit, and logical.