Definition: The human tendency to rely heavily on an initial piece of information when making decisions
Reference: Tversky and Kahneman experiment (1974) - Wheel of Fortune as an anchor for questions about UN African Nations.
Insight: Anchoring can influence our perception of fair pricing.
Definition: The ease of bringing to mind instances and the effect on our judgement of frequency.
Insight: Easy to recall and vivid events have a disproportionate impact on our judgement. We overemphasise examples or events that come easiest to our mind.
Definition: When we behave inconsistently with our beliefs we experience a negative state called cognitive dissonance.
Insight: We often feel the need to justify our actions, even when they conflict with our knowledge and beliefs.
Insight: We can experience dissonance when our actions are not reflected by rewards or coercion. Can often justify our actions, to ourselves or others, to reduce dissonance.
Reference: Leon Festinger: 1959 experiment - asking participants to complete a task in which they are paid $0, $1, or $20. The study showed that those paid $1 rated the experience as more enjoyable and felt a sense of importance, even than those paid $20. They created a story that justified to themselves why they were happy to do the tasks, even when they knew it was for a relatively small amount.
Definition: A form of learning where is reinforcer (food, praise, money etc.) is given after a performing a very specific act.
Definition: The belief that you are a better judge than others, and misfortune is less likely to happen to you than others.
Example: Creativity and brainstorming in groups.
Insight: Data suggests that people working alone have more creative output than working in groups because in groups we can let other people do the work.
