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Overcoming Bias Commenter's avatar

Pretty interesting observation.

There are basically two ways to deal with an observed bias. First, try to be aware and counter it. But, I agree with the late Tversky that this is a lot easier to say than do.

The second method is simply to avoid making those decisions that you have reason to believe that your biases are too great to overcome.

For example, suppose I tend to run red lights under certain circumstances causing a danger to myself and others. I could try to pay more attention to spotting red lights, or I could just stop driving in those circumstances.

Our entire due diligence law, protecting consumers from fraud, assumes that only the first method is valid: viz. giving investors, purchaser or consumers more information or knowledge to counter their biases. Many times, the second option is better - just don't make those decisions in which you know you are lousy at.

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Overcoming Bias Commenter's avatar

Alexis and HH, Good points. And HH, thanks for the advice!

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