What are some common logical reasoning biases and how can you avoid them?

Common logical reasoning biases include: - confirmation bias (favouring information that confirms pre-existing beliefs) - anchoring bias (relying too heavily on the first piece of information encountered), and - availability heuristic (overestimating the importance of information readily available). To avoid these biases, actively seek diverse perspectives, question initial assumptions, and evaluate evidence objectively before forming conclusions

Confirmation bias is the most common bias we see in our lives. It is the tendency to seek information that validates our line of thinking. We tend to ignore any information that goes against our established beliefs or line of thinking. This bias often causes avoidable disasters. The antidote to this bias is simple. Deliberately try to challenge what you believe is right by seeking data and evidence against it. After rigorous analysis of evidence and data, both for and against your line of thinking, come to any conclusion.

Confirmation bias can lead to flawed decision-making. When individuals selectively seek, interpret, or remember information that aligns with their existing beliefs, they may ignore valuable and diverse perspectives. This narrow focus can result in suboptimal choices and hinder the ability to make well-informed decisions. This can lead to stagnation of personal growth and miss opportunities for intellectual and emotional development!

Confirmation bias is an impediment to Generative Listening where the pathbreaking ideas, innovations can get missed when you are hearing to validate your own thoughts & reinforce rather than explore. “We hear what we want to hear!” Its time to develop the courage and compassion to listen to something different, contrary, abstract, alien & if nothing else its an exercise for your brain towards divergent thinking

This is commonly observed when- 1) object is perceived scarce in nature 2) there is perceived ambiguity/ limited information 3) there is perceived scarcity of time to make decision Anchoring bias can impact your bargaining power in negotiation & hence it is important to peg the right levers for leverage.

Similar to this would Recency effect bias- while giving feedback, the impact of recent incident recall can lead to Halo/ Horntail image about the subject, negating longer frame of time for subjectivity.

Hindsight bias fosters overconfidence as individuals perceive past events as predictable, leading to the illusion that they could have accurately predicted outcomes, potentially affecting future decision-making. By attributing past events as more foreseeable than they were, hindsight bias may lead to an underestimation of risks and challenges, hindering a realistic assessment of uncertainties in future situations.

This is so very true with the financial product design. A lot if insurance companies offering the endowment plan use this a manipulative tool to frame the products. Like invest Rs 1 Lacs every year for 10 year and we will give you 1 lacs for rest of your life after that. This seems so tempting but when you apply the principles of time value of money & compound effect, returns seems so absurd. It a classic framing effect where values of future is projected as if you are getting it today. Most investors falls for this, as humanly we are wired for visualizing linear grown, and exponential grown potential is missed in such cases.

As an NLP Practitioner I love what my mentor advises. Some key things we can do that can really assist. REMEMBER WISE TRUMPS SMART: wisdom is an ongoing journey that requires reflection, thinking, and an ability to let go of needing to be the smartest one in the room, one to win the argument at all costs. Smart knows a tomato is a fruit; wisdom knows not to put it in fruit salad PAY ATTENTION TO HOW YOU PAY ATTENTION: Think about thinking, then think about how you think about thinking CUT THROUGHT THE BS: check in with yourself. Is what you are saying or telling yourself just BS? Get real - get honest GET CONNECTED: really pay attention & listen, to self & others IMPLEMENT: take action, you have to actively & consistently work at it

Classic example is asking Leading Questions while interviewing or probing skews responses hence all behavior event interviews suggest framing open ended questions to avoid this bias. In courtroom one must have heard the lawyer’s objection “leading the witness” is due to framing effect.

To avoid common logical reasoning biases: 1. **Confirmation Bias**: Counteract by seeking contradictory information and engaging in discussions to challenge preconceptions. 2. **Anchoring Bias**: Avoid premature conclusions by evaluating diverse sources. Question initial assumptions to adjust judgments. 3. **Availability Heuristic**: Use statistical evidence and data over personal experiences to make informed decisions. This helps in making rational, unbiased choices by being mindful of how we process information and making an effort to consider a broad range of evidence and viewpoints.

The 3 biggest ones I find that I have to deal with are: confirmation bias, anchoring bias, and the sunk cost fallacy... the last one specifically I deal with constantly... it results in me continuing a venture based on past investments rather than future outcomes. To avoid this, I actively seek out diverse viewpoints, especially those contradicting my own, to challenge my assumptions. I remind myself to evaluate information based on its merits and relevance to the decision at hand, not just its alignment with my initial thoughts. I have to force myself to make a conscious effort to separate past investments from current decisions, focusing on future benefits and costs.