Appendix: Selective list of Behavioural Biases

René Doff

Bias Explanation
Ambiguity aversion Phenomenon that people avoid situations with uncertainties
Anchoring Effect that an initial piece of information serves as a reference point, even when it is irrelevant
Attribution bias Effect that one attributes occurrence of events to skill rather than luck
Attribution error Effect that success is attributed to skill and failure to occurrence of bad luck and external circumstances
Availability bias Effect that recent events weigh more heavily in our assessments of probability
Base rate fallacy Tendency to ignore general information when assessing a specific case
Causality trap Incorrect belief that when two events occur simultaneously, that one event must cause the other
Cognitive dissonance Psychological effect when new observations contradict earlier beliefs or thoughts
Collective rationalisation Subconsciously providing evidence and rationale for a decision by the group
Confirmation bias Effect that one will value information that confirms one’s belief much more than information disconfirming one’s belief
Conformity to authority Phenomenon that people follow a leaders’ visions or

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: