Biases in thinking and decision making

#con

Concepts

• Cognitive Bias
  • Anchoring bias
  • Peak-end rule
  • Framing effect

Issue

Since heuristics are often used unconsciously, our explanation as to how we decided the best price to pay is most likely a rationalization, rather than a true reflection of our thinking processes.

Key Study

Kahneman & Tversky
Study the anchoring bias