Logical Fallacies
Logical Fallacies
Overconfidence
- Overconfidence — wishful thinking bias
- most people think they are above avg
- overestimate possibilities that they want to happen
- this could explain the trade in financial market
- overconfidence in friends and leaders
Cognitive Dissonance
- Cognitive Dissonance 认知失调
- this concept used to describe the mental discomfort that results from holding two conflicting beliefs, values or attitudes
- People tend to seek consistency in their attitudes and perceptions, so this conflict causes feelings of unease or discomfort
- This inconsistency between what people believe and how they behave motivates people to engage in actions that will help minimize feelings of discomfort
- when we made decision, most people will still look for info about it, to self prove hisself right… in a lot different aspects… to make themselves happy, and to prove they are make right decision
- disposition effect — gonna avoid that
- what’s the causes for that?
- Forced Compliance
- Engaging in behaviors that are opposed to your own beliefs due to external expectations, often for work, school, or a social situation
- New Information
- Decisions
- People make decisions both large and small, on a daily basis
- When faced with two similar choices, people often are left with feelings of dissonance because both options are equally appealing
- Once they make decisions, people need to find a way to reduce feelings of discomfort
- Accomplish by justifying why their choice was the best option so that they can believe they made the right decision
- Forced Compliance
Mental Compartments
- Mental compartments
- people don’t look at whole portfolio, in fact, people has two or more portfolio
- usually they have a safe part and a risky part
- people don’t look at whole portfolio, in fact, people has two or more portfolio
Attention Anomalies
- Attention Anomalies
- We cannot pay attention to anything
- Attention is fundamental aspect of human intelligence and its limits
- Social Basis for attention
- We incline to pay more attention to what other s pay attention to
Anchoring
- Anchoring
- A tendency in ambiguous situations to allow one’s decisions to be affected by some anchor
- Our subconscious will do anchoring for us, lol
- subjects unaware of their own anchoring behavior
- stock prices anchored to past values, or to other stock in same market
Representativeness Heuristic
- Representativeness Heuristic
- People judge by similarity to familiar types, without regard to base rate probabilities
- For example, we describe a person as artist, and skeptical, then what’s the highest possible occupation of him/ her?
- two choice: banker, and sculptress
- should be banker, cause there are so many more bank tellers than sculptresses
- For example, we describe a person as artist, and skeptical, then what’s the highest possible occupation of him/ her?
- Tendency to see patterns in what is really random walk
- Stock price manipulators try to create patterns to fool investors
- People judge by similarity to familiar types, without regard to base rate probabilities
Disjunction Effect
- inability to make decisions in advance in anticipation of future information
Magical Thinking & Quasi Magical Thinking
- Some coincidence lead you to build superstitious, but there are actually no karma (cause and effect)
- Belief that unrelated events are causally connected despite the absence of any plausible causal link between them, particularly as a result of supernatural effects.
- E.G
- For voting, though our vote actually has basically 0 possibility to influence president election, but a lot people do it
- For lottery, we somehow put more money if we select the number
Personality Disorders
- culture and social contagion — collective memory
- same effect, same memory, then similar decisions
- Antisocial Personality Disorder
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文章标题:Logical Fallacies
文章字数:538
本文作者:Leilei Chen
发布时间:2021-09-12, 09:23:39
最后更新:2021-09-12, 09:50:35
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