How do cognitive biases impact decision making?

Cognitive biases significantly influence decision making by leading individuals to make flawed reasoning and irrational judgments. These biases are systematic patterns of deviation from norm or rationality in judgment, which can cause a person to overlook important information, overemphasize certain details, or engage in selective thinking. For instance, confirmation bias may lead someone to favor information that supports their existing beliefs while rejecting evidence that contradicts them.

When cognitive biases are at play, they can distort one’s perception of reality, leading to decisions that may not be based on sound logic or comprehensive analysis. This can result in outcomes that are not optimal, as decision-makers may rely on intuitive but erroneous patterns of thought rather than on critical evaluation of the available data. By understanding the impact of cognitive biases, individuals can work towards mitigating their effects and strive for more rational decision-making processes.