Category: Behavioral Economics

The Ostrich Effect

The Ostrich Effect

  “We know – intellectually – that confronting an issue is the only way to resolve it. But any resolution will disrupt the status quo. Given the choice between conflict and change on the one hand, and inertia on the other, the ostrich position can seem very attractive.” Margaret Heffernan...

The Halo Effect | Painting: Saint Lawrence by Bonanat Zaortiga

The Halo Effect

Don’t put people, or anything else, on pedestals, not even your children. Avoid global labels such as genius or weirdo. Realize those closest get the benefit of the doubt and so do the most beautiful and radiant among us. Know the halo effect causes you to see a nice person...

Status Quo Bias | Painting: The persistence of Memory by Salvador Dali

Status Quo Bias: Let’s stay the same

Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About...

Loss Aversion

“In trying to make sense of this pessimism, Ridley, like Kahneman, sees a combination of cognitive biases and evolutionary psychology as the core of the problem. He fingers loss aversion—a tendency for people to regret a loss more than a similar gain—as the bias with the most impact on abundance....