A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. Individuals create their own “subjective reality” from their perception of the input. An individual’s construction of reality, not the objective input, may dictate their behavior in the world. Thus, cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, or what is broadly called irrationality.
Below are 50 different biases we encounter and are influenced by on a regular basis. I will explain one of them to help you better understand the power these biases have over your life. We will examine “The IKEA Effect” in more detail below to help you understand how a bias works.
The IKEA Effect
In a study done by Norton, Michael I., Daniel Mochon, and Dan Ariely., (2012) at Harvard University, they uncovered a unique bias pertaining to task accomplishment and the value we give it, and this bias is called “The IKEA Effect”. It is a cognitive bias that refers to our tendency to attach a higher value to things we help to create.
Participants saw their amateurish creations as similar in value to experts’ creations, and expected others to share their opinions.
Other companies besides IKEA rally behind this psychological principle, to engage and foster brand name loyalty with their customer base, like the American retailer Build-A-Bear Workshop. This company creates a highly interactive setting for the customer to experience. Children, with the help of staff or adults, assemble their own stuffed animals from scratch.
The footwear company Nike created the‘ By You’ line that allows customers to partially customize some of their products. Customers pay a slight premium to create different patterns or color designs for items they like but want to spice up to their own liking.
Lack of knowledge seems to create stumbling blocks for the human condition, so I hope these 50 cognitive biases will help you be less ignorant of your own susceptibilities and mental blind spots. May the seeking power of truth remains strong in you. Take the red pill my friends, take the red pill!