written by ENIGMA

1. Confirmation Bias

• Definition: The tendency to search for, interpret, favor, and recall information that confirms one’s preexisting beliefs or theories.
• Example: A person who believes in a particular political ideology may only seek out news sources that align with that ideology and disregard opposing viewpoints.

2. Anchoring Bias

• Definition: The tendency to rely too heavily on the first piece of information (the "anchor") when making decisions.
• Example: If the first price you see for a car is $50,000, you might perceive a $40,000 price as a good deal, even if the car is worth much less.

3. Availability Heuristic

• Definition: The tendency to judge the probability of events based on how easily examples come to mind.
• Example: After hearing about a plane crash on the news, you might overestimate the danger of flying, even though statistically it’s much safer than driving.

4. Dunning-Kruger Effect

• Definition: The phenomenon where people with low ability or knowledge in a specific area tend to overestimate their competence.
• Example: A beginner in a sport may think they are more skilled than they actually are, leading them to make overly confident decisions.

5. Hindsight Bias

• Definition: The tendency to see events as having been predictable after they have already occurred.
• Example: After a stock market crash, people might say, “I knew this was going to happen,” even though there was no clear indication of it beforehand.