Biases and Heuristics

Michael Perla makes a good case for the importance of understanding human biases and heurisitics. This particular article focuses on anchoring, confirmation bias, and availability bias. His final thoughts:

We know that most people do not think or behave like the classical "economic man"-logical, rational and objective. With so many things vying for people's attention, we are constantly filtering our experience using heuristics and biases in order to more easily sift, sort and decide. By understanding people's irrational patterns, we can begin to understand the drivers behind certain behaviors.

You may begin to look differently at initial offers or prices, on the effect of recent events, and on searching for disconfirming evidence to what seems like a bulletproof idea, initiative, or strategy. By putting heuristics and biases in the light, and by making people, including yourself, aware of them, you can begin to reshape and reframe the decision criteria into criteria that better meet your goals and objectives.

If you like this kind of stuff, you may like this old post.