Question

In: Accounting

Describe the concept of cognitive bias and give an example of where you have seen this...

Describe the concept of cognitive bias and give an example of where you have seen this occur in your work or school life.

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Expert Solution

Cognitive Bias

A cognitive bias is a mistake in reasoning, evaluating, remembering, or other cognitive process, often occurring as a result of holding onto one's preferences and beliefs regardless of contrary information. Psychologists study cognitive biases as they relate to memory, reasoning, and decision-making. Many kinds of cognitive biases exist.

A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. Individuals create their own "subjective social reality" from their perception of the input. An individual's construction of social reality, not the objective input, may dictate their behaviour in the social world.Thus, cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, or what is broadly called irrationality

Examples:

1.a confirmation bias is the tendency to seek only information that matches what one already believes. Memory biases influence what and how easily one remembers.

2. people are more likely to recall events they find humorous and better remember information they produce themselves. People are also more likely to regard as accurate memories associated with significant events or emotions (such as the memory of what one was doing when a catastrophe occurred)


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