Effects Of Cognitive Biases Research Articles

Product-harm crisis and perceived betrayal: The moderating effect of cognitive bias

This study utilised an experimental design to examine the moderating effect of cognitive biases (availability of information and herd effect) on the relationship between product-harm crisis and perceived betrayal. In a series of three studies involving 596 young adults (college students: n = 386; female = 51.04%, male= 48.96%; mean age = 21.18 years, SD = 3.50 years) and general population: (n = 210; female= 47.60%, male= 52.40%; mean age= 31.76 years, SD = 12.79 years) we compared whether the single enterprise product-harm crisis perception, group product-harm crisis would lead to higher perceived betrayal. Results from regression analysis and ANOVA indicate that product-harm crisis perceptions predicted perceived betrayal. Group product-harm crisis led to higher perceived betrayal than that of single enterprise product-harm crisis. More importantly, the availability of information and herd effect strengthened the influence of product-harm crisis on perceived betrayal. The present findings are consistent with the theory of attribution of responsibility on crisis management and suggests a need for inclusive crisis management strategies under different perceived crises and cognitive states.

The Effects of Cognitive Bias on Fraud Examiner Judgments and Decisions

ABSTRACT This paper evaluates the effects that cognitive bias can have on fraud examiner judgment and decision-making. We draw on extant literature in accounting, auditing, and psychology to describe 11 specific biases that can undermine fraud examiner performance. Specifically, we use real-world examples from highly experienced anti-fraud professionals to consider each distinct bias given the unique engagement objectives, methods, relationships, and standards of evidence found in fraud examinations. We then discuss specific avoidance and mitigation strategies that fraud examiners can use to manage cognitive bias effects and improve their judgments and decisions. We conclude by suggesting the need for initial and continuing education in the area for professionals and future research to increase understanding in the area.

Kognitive Verzerrungen im forensischen Kontext – Zuverlässigere Risikobeurteilungen durch Debiasing?

Although the validity of forensic risk assessment has been in the focus of academic research in forensic mental health for the last 40 to 50 years, the quality of such assessments is still only moderately satisfactory on average. On one hand, there have been numerous attempts to improve the quality of assessments by developing new instruments or revising the content criteria of existing instruments. On the other hand, significant findings from decision psychology regarding the effect of cognitive biases on processes of judging have hardly found their way into the scientific debate so far. Consequently, there is also a lack of in-depth consideration of measures that counteract cognitive biases by applying debiasing strategies. However, erroneous judgements in the field of forensic mental health can cause severe consequences for individuals as well as for society. Therefore, sound empirical examination of debiasing strategies and their relevance to improve the validity of risk assessment is strongly recommended.

Effect of Cognitive Biases on Investment Decision Making: A Case of Pokhara Valley, Nepal

Background: Behavioral finance deals with the study of psychological influences on investors and financial markets. Investors commonly perform investment analysis through fundamental and technical analysis. The behavior of the investment market originates from the principles of psychological decision-making that explains the reasons behind buying and selling stocks. 
 Objectives: This paper aims to examine the effect of cognitive biases on investment decisions in Pokhara Valley, Nepal. The effect of five cognitive biases, such as availability, anchoring, overconfidence, herd instinct, and regret aversion, is measured on rational investment decision-making. 
 Methods: This study is based on primary data sources using non-probability (convenience method) sampling techniques. There are seven brokerage houses in Pokhara valley, and researchers selected 179 respondents involved in stock market investment. Both descriptive and inferential analyses were made to analyze the data. 
 Results: The study discovers a link between irrationality in financial decision-making and availability, overconfidence, and herd instinct biases, but anchoring and regret aversion biases had no effect on irrational investment decisions. However, though all the biases have a positive relationship with an irrational investment decision, overconfidence bias has the highest impact. Regret aversion bias has the least impact on investment decisions in comparison to the other four biases. 
 Conclusion: The investors and the policymakers should focus on finding the cognitive biases and various de-biasing methods to eradicate those biases throughout investment decision-making. The findings of this study have a number of implications for investors, brokers, and governments who aim to stimulate stock market investment.

An examination of relationship between cognitive biases and customer satisfaction: empirical evidence from Thailand

PurposeThis study aims to determine the effect of cognitive biases, that is, anchoring effect, illusion of control, and endowment effect, on customer satisfaction.Design/methodology/approachAn experimental design was applied using 524 undergraduate students as participants. A three-way ANOVA was employed for data analysis.FindingsPositive relationships were found between cognitive biases and customer satisfaction. However, no such relationships were found between the interactions of various types of cognitive bias and customer satisfaction, except the interaction between illusion of control and endowment effect.Research limitations/implicationsThis study focuses only on three types of cognitive biases; thus, it cannot be generalized to other such systematic patterns.Practical implicationsMarketers can introduce cognitive bias when implementing marketing campaigns to boost customer satisfaction.Originality/valueThis study expands the knowledge boundary by addressing the impact of the interaction between various aspects of cognitive bias that drive customer satisfaction.

Cognitive biases cloud our clinical decisions and patient expectations: A narrative review to help bridge the gap between evidence-based and personalized medicine.

In sports medicine and rehabilitation of musculoskeletal conditions, training, knowledge and expertise of clinicians are the guarantors of good clinical practice. But are they really? Since the 1970s, a growing body of sociological and behavioral science has developed the concepts of cognitive biases and thinking errors. In a nutshell, it tries to explain how we approach decision-making using shortcuts, or heuristics. Our brains will alternatively use 2 systems to think and decide: system 1 is fast, intuitive and emotional, whereas system 2 is slow, logical and conscious. We may think clinicians use the latter systematically, but they actually use system 1 in many situations. Whether due to intrinsic thinking errors or external forces that cloud our judgment, we are under unconscious influences and so are all the stakeholders in the rehabilitation setting, including the patient/athlete. We present some of the most prevalent biases that pervade clinical decision-making and attempt to give a bit of background context starting from the typical tension between academic authority and personal experience. The field of sports performance is also riddled with beliefs, egocentrism and a general tendency to search for magic bullets that will bring the marginal gains and edge over the competition. This plays into the rehabilitation of patient-athletes in different ways. Finally, there are ways to mitigate the effect of cognitive biases to improve decision-making. This must include better communication, shared decisions and ultimately the understanding that we should drive our profession to deliver high-value care tailored to the patients, in line with the best evidence at the best possible cost. Hopefully, we can shed some light without too many of our own biases on the complexities of thinking in sports medicine and rehabilitation.

Recognising logical fallacies in nursing practice to support effective clinical decision-making.

Logical fallacies can affect routine and complex decision-making, potentially leading to a reduction in the efficacy or application of robust evidence to care. Experienced and inexperienced nurses may inadvertently integrate fallacious reasoning into their clinical decisions due to the inherent deceptiveness of logical fallacies and the effect of cognitive biases. By gaining an understanding of logical fallacies, nurses may be able to identify them during clinical reasoning processes, thereby mitigating their effects on clinical outcomes. This article considers six of the most common logical fallacies and provides examples of how they might manifest in clinical practice.

PENGARUH COGNITIVE BIAS DAN EMOTIONAL BIAS TERHADAP KEPUTUSAN PENEMPATAN DANA UNTUK MODAL KERJA PADA USAHA KECIL MENENGAH (UKM) DI PULAU LOMBOK PADA MASA PANDEMI COVID 19

This study aims to analyze the Effect of Cognitive Bias and Emotional Bias on Fund Allocation Decision for Working Capital in Small and Medium Enterprises (SMEs) on Lombok Island during the Covid 19 Pandemic. The theoretical contribution of this research is expected to contribute to science and the development of behavioral finance theory that related to financial decision making and company performance in Small and Medium Enterprises (SMEs). In addition, behavioral finance is also expected to be the subject of financial management courses. Furthermore, the practical contribution of this research is expected to provide input, suggestions and recommendations to the policy makers of the NTB Provincial Government in making policies related to the development of SMEs. This research is a quantitative approach-based research, with the type of explanatory research. The research population is all SMEs located on the island of Lombok. The sampling technique is carried out by non-probability sampling, which uses judgment sampling, namely selecting SMEs that are engaged in the pottery industry and have already exported. From the existing population, there are 34 (thirty four) SMEs that can be taken as samples. Respondents in this study are the owners of each of these SMEs. The data collection technique used in this research is using a questionnaire. To achieve the research objectives and hypothesis testing, the data obtained will be processed according to the needs by using the statistical tool GSCA (Generalized Structured Component Analysis). The results showed that Cognitive Bias and Emotional Bias had a positive and significant impact on fund allocation decision for Working Capital in Small and Medium Enterprises (SMEs) on Lombok Island during the Covid 19 Pandemic. This was motivated by the age of most of the respondents of productive age, mostly male, the education level is mostly high school and college and the length of business is more than 15 (fifteen) years.

Policy Forum: Cognitive Bias as a Factor in Determining the Efficiency of Sliding Scales

In tax law, sharp lines occur where a minimal change in a taxpayer's circumstances results in significantly different legal treatment. Sharp-line tests are criticized because they encourage taxpayers to alter their optimal behaviour for purely tax reasons, thereby producing deadweight loss. The most obvious alternatives to sharp-line tests are sliding scales, which operate by imposing tax proportionately on the basis of where taxpayers fall along a continuum. Scholars, including Edward Fox and Jacob Goldin, have suggested that the adoption of sliding scales in determining tax liability as opposed to the use of sharp-line tests could reduce deadweight loss in many contexts. However, the adoption of sliding scales generally comes at the cost of greater complexity, which can lead taxpayers to make systematic errors in selecting optimal behaviours and can also introduce cognitive biases. This article argues that smoothing existing sharp-line tests may not bring about predicted efficiency gains if such predictions rely on taxpayers behaving optimally. Rather, a more accurate determination of the change in deadweight loss occasioned by a shift from sharp lines to sliding scales would also account for the effects of cognitive bias. In order to illustrate the concepts dealt with herein, this article establishes a simplified example based on tax residence to explain the concepts of deadweight loss, sharp lines, and sliding scales in the context of Fox and Goldin's suggestion that sliding scales would be more efficient than sharp lines in many circumstances.

Cognitive Biases and the Detection of Production Disruptions

This research studies the effect of cognitive biases on the reliability of operators when detecting production disruptions, e.g. machine breakdowns and missing parts. We combine a systematic literature review on disruption management, human reliability and cognitive biases (CB) with a single case study where we interview five operators. We formalize the potential error generation process when detecting disruptions in a three step approach and identify error modes where CB potentially influence operators. This research is beneficial for operations managers and researchers who aim to improve the reliability of operators when detecting disruptions.

Cognitive bias and the order of examination in forensic anthropological non-metric methods: a pilot study

ABSTRACT Research has established that contextual information has the potential to influence the decisions of examiners in various forensic domains, including forensic anthropology. Studies have demonstrated that the non-metric sex estimation methods are susceptible to issues of cognitive bias, however the different types of stimuli that can influence the decision-making process remain understudied. As forensic anthropologists will examine multiple skeletal elements to estimate the sex of skeletal remains, a pilot study was designed to assess the potential of cognitive bias resulting from the order of examination. Two groups performed a non-metric sex estimation of the innominates and the skull with methods from Standards on one individual complete skeleton. Group A examined the skull first followed by the innominates, while Group B examined the innominates first followed by the skull. Results reveal a significant difference between the two groups in the sex estimation of the innominates and the complete skeleton (p = 0.020 and p = 0.022, respectively). This research demonstrates that order of examination for sex estimation may act as context and potentially influence the subsequent analyses. Additional research is necessary to broaden the understanding of decision-making and aid in the establishment of standard operating procedures designed to mitigate the potential effects of cognitive bias.

Metric forensic anthropology decisions: Reliability and biasability of sectioning-point-based sex estimates.

Subjective decisions make human cognitive processes more susceptible to bias and error. Specifically, research indicates that additional context biases forensic anthropologists' morphological analyses. To address whether metric analyses are also subject to bias, we conducted a pilot study in which 52 experienced osteologists measured a difficult-to-classify human femur, with or without additional contextual information. Using a metric sectioning-point sex-estimation method, participants provided a sex estimate for individual skeletal element(s) and, when given multiple elements, the combined skeletal assemblage. Control group participants (n=24) measured only the femur. In addition to the femur, bias group participants (n=28) either measured a female humerus and viewed a female-biasing photograph (n=14) or measured a male humerus and viewed a male-biasing photograph (n=14). We explored whether the experts in the different groups would differ in: (1) femoral measurements; (2) femoral sex-estimation conclusions; and (3) final sex-estimation conclusions for the skeletal assemblage. Although the femoral measurements and femoral sex estimates were comparable across groups, the overall sex estimates in the female-biased group were impacted by contextual information-differing from both the control and male-biased groups (p<0.001). Our results demonstrate that cognitive bias can occur even in metric sex-estimation conclusions. Specifically, this occurred when the metric data and single-element sex estimates were synthesized into an overall estimate. Thus, our results suggest that metric methods are most vulnerable to bias when data are synthesized into an overall conclusion, highlighting the need for bias countermeasures and comprehensive statistical frameworks for synthesizing metric data to mitigate the effects of cognitive bias.

Balancing the work-life balance: A cognitive approach to subjective well-being

Today, our jobs have become less secure as a lifelong career and more reliant on technology where knowledge is shared real-time irrespective of the location or time. Although employees now have more flexibility over how they work, they constantly must manage the challenges of balancing three key areas: their mental and physical well-being; their family members well-being; and their work performance and relationships. This paper focuses on work-life balance (WLB), and how this can be sustained overtime. We assert that by using the theorisation of psychological distance in Construal Level Theory (CLT) and Hedonic Adaptation theory, it is possible to get a deeper understanding as to how temporal, emotional and behavioural demands are constructed and the effect of cognitive biases in shaping our perceived situational awareness. We use a novel approach to conceptualise that it is possible to achieve cognitive reframing and perceive the natural state of the situation to sustain WLB and baseline happiness. We assert that cognitive reframing could lead to maintaining an overall sense of harmony in life by improving the subjective well-being without overdependence of material well-being.&#x0D; Keywords: Work-life balance, mindfulness, construal level theory, well-being, psychological distance, hedonic adaptation.

Emotion Regulation as a Mediator in the Relationship Between Cognitive Biases and Depressive Symptoms in Depressed, At-risk and Healthy Children and Adolescents

Contemporary cognitive models of depression propose that cognitive biases for negative information at the level of attention (attention biases; AB) and interpretation (interpretation biases; IB) increase depression risk by promoting maladaptive emotion regulation (ER). So far, empirical support testing interactions between these variables is restricted to non-clinical and clinical adult samples. The aim of the current study was to extend these findings to a sample of children and adolescents. This cross-sectional study included 109 children aged 9–14 years who completed behavioural measures of AB (passive-viewing task) and IB (scrambled sentences task) as well as self-report measures of ER and depressive symptoms. In order to maximize the variance in these outcomes we included participants with a clinical diagnosis of depression as well as non-depressed youth with an elevated familial risk of depression and non-depressed youth with a low familial risk of depression. Path model analysis indicated that all variables (AB, IB, adaptive and maladaptive ER) had a direct effect on depressive symptoms. IB and AB also had significant indirect effects on depressive symptoms via maladaptive and adaptive ER. These findings provide initial support for the role of ER as a mediator between cognitive biases and depressive symptoms and provide the foundations for future experimental and longitudinal studies. In contrast to studies in adult samples, both adaptive as well as maladaptive ER mediated the effect of cognitive biases on depressive symptoms. This suggests potentially developmental differences in the role of ER across the lifespan.

북한에 대한 인지편향(기준점편향)이 통일인식에 미치는 영향

북한에 대한 인지편향(기준점편향)이 통일인식에 미치는 영향

Behavioural public administration: a systematic review on the effects of cognitive biases on public adminstration decisions

Public administration and psychology can dialogue by outlining a distinct approach in public administration that integrates both fields of study: behavioral public administration. The behavioral public administration can be beneficial for practitioners, such as policy makers, public managers, and public professionals, by the development of usable knowledge. This paper aims to elaborate a systematic literature review of the findings on the application of the behavioral economics principles on the public administration and the effects of cognitive biases from the behavioral economics perspectives on public managerial decisions. It will provide a comprehensive overview of the problems that could emerge from this decision-making process. The main contribution that is objected through this research is consolidate the current state of the art on the cognitive biases studies within Public Administration and identify the application and theoretical knowledge gaps that can provide new research opportunities. RESUMOA administração pública e a psicologia podem dialogar delineando uma abordagem distinta na administração pública que integra os dois campos de estudo: administração pública comportamental. A administração pública comportamental pode ser benéfica para os profissionais, como formuladores de políticas, gestores públicos e profissionais públicos, pelo desenvolvimento de conhecimento utilizável. Este artigo tem como objetivo elaborar uma revisão sistemática da literatura dos achados sobre a aplicação dos princípios da economia comportamental na administração pública e os efeitos dos vieses cognitivos da perspectiva da economia comportamental nas decisões gerenciais públicas. Ele fornecerá uma visão abrangente dos problemas que podem surgir desse processo de tomada de decisão. A principal contribuição que se objetiva com esta pesquisa é consolidar o estado da arte atual sobre os estudos de vieses cognitivos na Administração Pública e identificar as lacunas de aplicação e de conhecimento teórico que podem proporcionar novas oportunidades de pesquisa.

A review of possible effects of cognitive biases on interpretation of rule-based machine learning models

While the interpretability of machine learning models is often equated with their mere syntactic comprehensibility, we think that interpretability goes beyond that, and that human interpretability should also be investigated from the point of view of cognitive science. The goal of this paper is to discuss to what extent cognitive biases may affect human understanding of interpretable machine learning models, in particular of logical rules discovered from data. Twenty cognitive biases are covered, as are possible debiasing techniques that can be adopted by designers of machine learning algorithms and software. Our review transfers results obtained in cognitive psychology to the domain of machine learning, aiming to bridge the current gap between these two areas. It needs to be followed by empirical studies specifically focused on the machine learning domain.

Cognitive biases policy (CBP) in performance improvements – the example of benchmarking

PurposeDespite evidence showing that cognitive biases – the systematic errors made by humans during cognitive processing, are prevalent among decision-makers, there is a lack of theoretical models providing insight into how these limitations of human mind might affect decisions made during performance management. This study aims to fill this gap and contribute to performance management scholarship by proposing a conceptual framework broadening our understanding of the role of cognitive biases in performance improvements practices and by highlighting remedies for cognitive biases.Design/methodology/approachUsing benchmarking as an example, the authors integrate the knowledge from performance management and cognitive psychology literature. Examples of cognitive biases possible during benchmarking are used to illustrate how the limitations of human mind might have a critical role in performance management.FindingsThe cognitive biases might diminish the positive effect of performance improvement practice on organizational performance. As there is a prevalence of cognitive biases coupled with the inability of individuals to recognize and face them, the remedy for cognitive biases should be sought not at an individual but rather on an organizational level, in creating organizational cognitive biases policy (CBP).Originality/valueThe presented model provides new insights into the role of cognitive biases in performance management and allows seeing CBP as a safeguard against the effects of cognitive biases on performance. By referring to cognitive biases and CBP, our model also helps to understand why the same performance improvement practices might incite different opinions among decision-makers.

Impact of Cognitive Biases on Progressive Visualization.

Progressive visualization is fast becoming a technique in the visualization community to help users interact with large amounts of data. With progressive visualization, users can examine intermediate results of complex or long running computations, without waiting for the computation to complete. While this has shown to be beneficial to users, recent research has identified potential risks. For example, users may misjudge the uncertainty in the intermediate results and draw incorrect conclusions or see patterns that are not present in the final results. In this article, we conduct a comprehensive set of studies to quantify the advantages and limitations of progressive visualization. Based on a recent report by Micallef et al., we examine four types of cognitive biases that can occur with progressive visualization: uncertainty bias, illusion bias, control bias, and anchoring bias. The results of the studies suggest a cautious but promising use of progressive visualization - while there can be significant savings in task completion time, accuracy can be negatively affected in certain conditions. These findings confirm earlier reports of the benefits and drawbacks of progressive visualization and that continued research into mitigating the effects of cognitive biases is necessary.

An Analysis of the Decrees of Plenary Sessions of the Supreme Court of the Russian Federation from the Standpoint of Cognitive Biases of Criminal Proceedings' Professional Participants

The research concepts of cognitive biases - predictable systemic cognitive mistakes - are being actively developed and used in different areas. A series of experiments showed that criminal proceedings participants also fall under the influence of cognitive biases and heuristics. Irrational assessments of judges, investigators, prosecutors, etc. could have a negative impact on crime investigation and sentencing because these processes should be rationalized as much as it is possible. The author summarizes the available information on systemic cognitive mistakes, analyzes some types of cognitive biases typical of professional participants of criminal proceedings and examines the unfavorable consequences of their impact using the data of court statistics for 2018. It is proven that one of the available ways of overcoming the negative effects of cognitive biases is the recommendations of plenary sessions of the Supreme Court of the Russian Federation. At the same time, its Decrees could acts as triggers of cognitive biases. The article presents an analysis of the Decrees of plenary sessions of the Supreme Court that proves the existence of contradictions between the objectives of presented recommendations and their actual impact on the professional participants of criminal proceedings due to the emerging cognitive biases. In this connection, the author raises the question of the necessity of changing recommendations given in the Decrees of the Supreme Court. Specifically, the author presents a new edition of the Decree of the plenary session of the Supreme Court «On the Practice of Imposing Criminal Penalties by Courts of the Russian Federation» of Dec. 22, 2015 No 58 with changes in the part that regulates taking into account the circumstances characterizing the personality of the defendant. Besides, in order to improve the law enforcement practice on cases of self-defense, the author suggests reconsidering the whole concept in the Decree of the Plenary Session of the Supreme Court «On the Application of Self-Defense Legislation by Courts and on Infliction of Harm during the Apprehension of a Person who Committed a Crime» of September 27, 2012 to reduce the impact of retrospective bias while adjudicating on cases of defense against attacks.