Some fascinating facts to consider from the BrainHQ blog.
1: We all think our memory is better than it is, and we rely on it too much. This made me laugh, when I remembered a friend and I trying to help the police with a drawing of a suspected robber. We had such wildly different memories of what the guy looked like!
2: We also rely on our expectations even when our experience shows us they're wrong.
3: The sunk cost fallacy. Have you ever ordered something at a restaurant that you really didn't like, but you ate it because you paid for it? Or finished a book because you were about halfway through, and even though it wasn't great, you felt like you had to keep going? Since we feel loses more than gains, this fallacy can lead to some bad decision making--just ask people who hold onto stocks because they've lost money on it, and are afraid to lose more.
4: We stereotype people, even when we try hard not to. This one is so hard to overcome. We have built-in reactions when we see people that sometimes we can't control.
5: We're really bad at predicting odds and probabilities. Gamblers are a great example of this, but try it with friends. Flip a coin, and ask them to predict heads or tails. Many people will let the previous toss sway their decision, but EACH toss has a 50-50 probability. There's no pattern to it, but most of us fall victim to it all the time.
Which of these mistakes can you identify with? Which do you think have a negative effect on your life?