logical-fallacy

100 Logical Fallacies You Must Know!

A Logical Fallacy is a flaw in reasoning that can undermine the validity of an argument. It occurs when the premises (evidence or reasons) presented in an argument do not logically support the conclusion drawn. Fallacies can be used intentionally to deceive, or they can be unintentional errors in thinking. Recognizing and understanding logical fallacies is essential for critical thinking and effective communication. Various types of fallacies exist, each with its own characteristic flaws in reasoning.

AspectExplanation
Key ElementsLogical fallacies can be categorized into several types, including:
Formal Fallacies: These involve errors in the logical structure of an argument, rendering it invalid. An example is the “fallacy of affirming the consequent” in a conditional argument.
Informal Fallacies: These are errors related to the content or meaning of the argument rather than its structure. Common informal fallacies include ad hominem attacks, straw man arguments, and appeals to emotion.
Fallacies of Relevance: These fallacies divert attention away from the argument’s central point by introducing irrelevant information or emotional appeals. Examples include red herrings and appeals to authority.
Fallacies of Ambiguity: These arise from ambiguous language or terms with multiple meanings. Equivocation and amphiboly are examples of such fallacies.
Fallacies of Presumption: These occur when an argument makes unjustified assumptions. Circular reasoning and begging the question are examples of presumption fallacies.
Fallacies of Weak Induction: These involve weak or insufficient evidence to support a conclusion. Hasty generalization and anecdotal evidence fall under this category.
Fallacies of Faulty Analogy: These arise from comparisons that are not appropriately analogous, leading to faulty conclusions.
Fallacies of Suppressed Evidence: Occurring when relevant information is deliberately omitted, leading to a biased or misleading argument.
Fallacies of False Cause: These involve asserting a cause-and-effect relationship without sufficient evidence. Post hoc fallacy and false dilemma are examples.
ApplicationsUnderstanding logical fallacies is crucial in various applications:
Argument Evaluation: It allows individuals to critically assess arguments made in discussions, debates, or written materials.
Debate and Persuasion: Recognizing fallacies helps debaters avoid using flawed reasoning and helps audiences identify fallacious arguments.
Critical Thinking: Teaching logical fallacies is a fundamental component of critical thinking education.
Writing and Communication: Writers and speakers can enhance the persuasiveness of their arguments by avoiding fallacious reasoning.
Legal and Ethical Analysis: Lawyers and ethicists use knowledge of fallacies to construct sound arguments and identify weaknesses in opposing arguments.
Advertising and Marketing: Consumers can critically evaluate advertising claims and marketing messages for fallacious appeals.
BenefitsThe benefits of understanding logical fallacies include: – Improved Critical Thinking: Recognizing fallacies enhances one’s ability to think critically and evaluate arguments effectively.
Effective Communication: Avoiding fallacies improves the clarity and persuasiveness of communication.
Reduced Deception: Identifying fallacies helps individuals avoid being misled by deceptive or manipulative arguments.
Informed Decision-Making: Sound reasoning leads to better decision-making in personal, professional, and ethical contexts.
Constructive Debates: Debates and discussions are more productive when participants avoid fallacious tactics and focus on substantive issues.
Enhanced Problem-Solving: Critical thinking skills developed through understanding fallacies contribute to effective problem-solving.
ChallengesChallenges related to logical fallacies include:
Subjectivity: Identifying fallacies can sometimes be subjective, as it may involve interpretation and judgment.
Complexity: Some fallacies are subtle and require a deep understanding of language and logic to detect.
Emotional Appeal: Fallacies that rely on emotional appeals can be effective, even when individuals are aware of them.
Deceptive Use: Some individuals intentionally use fallacies to deceive or manipulate others.
Cultural and Contextual Variation: The perception of fallacies can vary across cultures and contexts. What is considered a fallacy in one setting may not be in another.
Confirmation Bias: People may be more prone to spotting fallacies in arguments they disagree with while overlooking them in arguments they support.
Prevention and MitigationTo address the challenges associated with logical fallacies:
Education: Promote education in critical thinking and logical reasoning from an early age.
Awareness: Encourage individuals to be aware of their own potential for fallacious reasoning and to seek feedback from others.
Fact-Checking: Verify information and claims from multiple sources to reduce the risk of accepting fallacious arguments.
Constructive Dialogue: Foster open and respectful dialogues where participants focus on the substance of arguments rather than fallacious tactics.
Counterarguments: Develop the ability to construct effective counterarguments when faced with fallacious reasoning.
Media Literacy: Equip individuals with the skills to critically evaluate media content, advertisements, and political discourse.

100 Logic Fallacies

  • Ad Hominem: Attacking the character, motives, or attributes of a person making an argument rather than addressing the argument itself.
  • Affirming the Consequent: A formal fallacy in which the conclusion affirms the antecedent in a conditional statement, leading to an invalid argument.
  • Ambiguity Fallacy: Using vague or ambiguous language to make an argument that can be interpreted in multiple ways, often to avoid addressing a specific point.
  • Anecdotal Evidence: Relying on personal anecdotes or isolated incidents as evidence to support a general claim, without considering statistical or broader data.
  • Appeal to Authority: Using the endorsement or opinion of an authority figure as evidence to support an argument, even when the authority is unrelated.
  • Appeal to Fear: Using fear or scare tactics to persuade others to accept an argument or take a certain course of action, often without sound reasoning.
  • Appeal to Ignorance: Arguing that a claim is true because it has not been proven false, or vice versa, without sufficient evidence either way.
  • Appeal to Nature: Arguing that something is better or morally superior because it is natural, without considering the evidence for its safety or efficacy.
  • Appeal to Tradition: Arguing that a practice or belief is valid or superior because it has been accepted or followed for a long time, without evaluating its merits.
  • Bandwagon Fallacy: Claiming that something is true or valuable because many people believe or do it, appealing to popularity rather than evidence.
  • Begging the Question: Making an argument that assumes the conclusion is true without providing any independent evidence or support.
  • Burden of Proof: Shifting the burden of proof from the person making a claim onto the person questioning or challenging the claim.
  • Circular Reasoning: Using a claim as evidence to support itself, resulting in a circular argument where the conclusion is the same as the premise.
  • Composition and Division: Erroneously inferring that a property of a group must apply to all of its members (Composition) or that it applies to individual members (Division).
  • Confirmation Bias: Cherry-picking or emphasizing information that confirms preexisting beliefs or hypotheses while ignoring contradictory evidence.
  • False Analogy: Making an argument by drawing a flawed or irrelevant comparison between two things that are not sufficiently alike.
  • False Cause (Post Hoc): Assuming that because one event followed another, the first event caused the second event, without sufficient evidence.
  • False Dichotomy (False Dilemma): Presenting a limited set of options as the only possibilities when other options exist, creating a misleading binary choice.
  • False Equivalence: Treating two fundamentally different things as if they are equivalent, often to create a false sense of balance or fairness.
  • Fallacy of the Beard: Arguing that because a line cannot be precisely drawn between two extremes, there is no meaningful distinction between them.
  • Fallacy of Division: Assuming that what is true for the whole is also true for the parts, or vice versa, without proper evidence or justification.
  • Fallacy of Composition: Assuming that what is true for the parts is also true for the whole, or vice versa, without proper evidence or justification.
  • Fallacy of Sunk Costs: Continuing an endeavor or investment based on the resources already invested, despite the likelihood of future losses or failure.
  • Fallacy of the Single Cause: Attributing a complex event or outcome to a single, simplistic cause, ignoring other contributing factors or variables.
  • Gambler’s Fallacy: Believing that past events or outcomes influence future random events, such as assuming that a series of coin flips will even out.
  • Genetic Fallacy: Judging the merit or validity of an idea, product, or person based on its origins or history rather than its current attributes.
  • Hasty Generalization: Drawing a conclusion based on insufficient or biased evidence, often by making sweeping statements about a large group.
  • Ignoring a Common Cause: Incorrectly assuming that because two events are correlated, one must have caused the other, without considering a common cause.
  • Irrelevant Conclusion (Ignoratio Elenchi): Diverting attention from the original issue or argument by introducing unrelated or irrelevant information.
  • Loaded Question: Asking a question that contains an assumption or presumption, often used to lead the respondent toward a particular answer.
  • Middle Ground Fallacy: Assuming that a compromise between two extreme positions is the best or correct solution, without considering the evidence or context.
  • Non Sequitur: Drawing a conclusion that does not logically follow from the premises or evidence presented in the argument.
  • No True Scotsman: Modifying the definition of a term or category to exclude counterexamples when challenged, thereby avoiding counterarguments.
  • Personal Incredulity: Rejecting a claim or argument because it is difficult to understand or goes against one’s personal beliefs or intuition.
  • Poisoning the Well: Discrediting or undermining an opponent’s argument or credibility in advance, often through personal attacks or derogatory comments.
  • Red Herring: Introducing irrelevant information or a distracting topic to divert attention from the main issue being discussed.
  • Relative Privation (The “Not as Bad as” Fallacy): Dismissing or downplaying a problem or issue by comparing it to a more extreme or severe situation.
  • Slippery Slope: Arguing that a small or minor event will lead to a chain of catastrophic consequences without providing sufficient evidence.
  • Special Pleading: Applying different standards or rules to oneself or a particular group while expecting others to adhere to different standards.
  • Spotlight Fallacy: Overemphasizing or attributing significance to rare events or outliers while ignoring more common or representative data.
  • Straw Man: Misrepresenting or exaggerating an opponent’s argument to make it easier to attack, rather than addressing the actual argument.
  • Texas Sharpshooter Fallacy: Cherry-picking data or evidence after the fact to create a pattern or correlation where none exists, leading to a false conclusion.
  • Tu Quoque (You Too): Dismissing or justifying one’s own actions or flaws by pointing out similar behavior or flaws in others, without addressing the issue at hand.
  • Two Wrongs Make a Right: Arguing that it is acceptable to do something wrong or unethical because someone else has done something similar.
  • Unfalsifiability: Making a claim or argument that cannot be tested or disproven, rendering it immune to empirical verification or refutation.
  • Weak Analogy: Making an argument based on an analogy that is too dissimilar or weak to support the conclusion.
  • Composition Fallacy: Assuming that a characteristic of a group applies to each individual member of the group, often leading to stereotypes or prejudice.
  • Division Fallacy: Assuming that a characteristic of an individual member of a group applies to the entire group, often leading to unjust generalizations.
  • Fallacy of Suppressed Evidence: Intentionally or unintentionally omitting relevant information or evidence that would weaken or contradict an argument.
  • Fallacy of False Authority: Relying on the opinions or endorsements of individuals who may have expertise in one area but are not qualified in the relevant field.
  • Appeal to Consequences: Arguing that a statement or belief must be true or false based on whether the consequences of it being true or false are desirable.
  • Appeal to Tradition: Arguing that a practice or belief is valid or superior because it has been accepted or followed for a long time, without evaluating its merits.
  • The Fallacy Fallacy: Assuming that a conclusion is false because the argument supporting it is fallacious, overlooking the possibility that the conclusion may still be true.
  • Argument from Incredulity: Rejecting a claim or argument because it is difficult to comprehend or imagine, without providing a reasoned counterargument.
  • Argument from Silence: Arguing that because something is not mentioned or documented, it must not exist or be true.
  • Begging the Question (Petitio Principii): Making an argument that assumes the conclusion is true without providing any independent evidence or support.
  • Cherry-Picking (Selective Evidence): Selectively presenting only the evidence or data that supports one’s argument while ignoring contrary evidence.
  • Circular Definition: Defining a term or concept using the same term or a closely related term, leading to a circular and uninformative definition.
  • Equivocation: Using a word or phrase with multiple meanings and switching between them in an argument to create confusion or deception.
  • Fallacy of Ambiguity: Capitalizing on multiple meanings or interpretations of a word, phrase, or statement to advance an argument.
  • Fallacy of False Cause (Cum Hoc): Incorrectly assuming that two events occurring simultaneously or in close succession must be causally related.
  • Fallacy of False Compromise: Assuming that the truth must lie somewhere between two opposing positions, without considering the possibility of one side being entirely correct.
  • Fallacy of Hasty Generalization: Drawing a sweeping or unwarranted conclusion based on limited or insufficient evidence.
  • Fallacy of Historian’s Fallacy: Judging the past based on present knowledge or values, without considering the historical context.
  • Fallacy of Misleading Vividness: Using emotionally charged or vivid examples to make an argument, even when these examples are not representative of the overall situation.
  • Fallacy of Misplaced Concreteness (Reification): Treating abstract concepts, models, or ideas as if they are concrete or real entities.
  • Fallacy of Relevance: Introducing information or arguments that are irrelevant to the issue being discussed.
  • Fallacy of the False Hypothesis: Formulating a hypothesis or theory without sufficient evidence and then using it to support an argument.
  • Fallacy of the Single Cause (Post Hoc Ergo Propter Hoc): Incorrectly attributing a complex event or outcome to a single, simplistic cause.
  • Fallacy of Wishful Thinking: Accepting or endorsing a claim because it is emotionally appealing or because one wishes it to be true.
  • False Attribution: Misattributing a statement or argument to an incorrect or unrelated source.
  • Fallacy of False Balance: Presenting an issue as if it has two equal sides or two equally valid arguments, even when one side lacks evidence or scientific support.
  • Fallacy of False Comparison: Making a comparison between two items or concepts that are not truly comparable due to significant differences.
  • Fallacy of False Dilemma (False Dichotomy): Presenting a limited set of options as the only possibilities when other options exist, creating a misleading binary choice.
  • Fallacy of False Precision: Expressing a measurement or statistic with a level of precision that is not supported by the available data or methodology.
  • Fallacy of Irrelevant Authority: Citing an authority figure who lacks expertise or credibility in the relevant field or context.
  • Fallacy of Omniscience: Claiming to know or assert that something cannot exist or occur without providing adequate evidence.
  • Fallacy of Poisoning the Well: Discrediting or undermining an opponent’s argument or credibility in advance, often through personal attacks or derogatory comments.
  • Fallacy of Reverse Causation: Incorrectly assuming that the effect must be the cause, or vice versa, without considering the temporal sequence of events.
  • Fallacy of Trivial Objections: Rejecting an argument or claim based on minor or inconsequential flaws or objections, while ignoring the central point.
  • Fallacy of Unrepresentative Sample: Drawing conclusions about a population or group based on a sample that is not representative or biased.
  • Fallacy of Vacuous Truth: Treating a statement or argument as valid or true when it is vacuously true due to its lack of meaningful content.
  • Fallacy of the Biased Generalization: Making a generalization based on a biased or non-representative sample, leading to a skewed or inaccurate conclusion.
  • Fallacy of the Complex Question: Asking a question that contains an assumption or presumption, often used to lead the respondent toward a particular answer.
  • Fallacy of the Golden Mean: Assuming that the middle ground or compromise between two extreme positions is always the best or correct solution.
  • Fallacy of the Law of Small Numbers: Drawing conclusions based on a small or inadequate sample size, leading to unreliable or misleading results.
  • Fallacy of the Perfect Solution: Rejecting or criticizing a proposed solution or action because it does not solve a problem completely or perfectly.
  • Fallacy of the Questionable Premise: Basing an argument on a premise that is questionable or open to debate, making the argument less convincing.
  • Fallacy of the Regressive Fallacy: Incorrectly assuming that if a deviation from the norm occurs, the next outcome will necessarily be closer to the norm.
  • Fallacy of the Slippery Slope: Arguing that a small or minor event will lead to a chain of catastrophic consequences without providing sufficient evidence.
  • Fallacy of the Straw Man: Misrepresenting or exaggerating an opponent’s argument to make it easier to attack, rather than addressing the actual argument.
  • Fallacy of the Texas Sharpshooter: Cherry-picking data or evidence after the fact to create a pattern or correlation where none exists, leading to a false conclusion.
  • Fallacy of Weak Analogy: Making an argument based on an analogy that is too dissimilar or weak to support the conclusion.
  • Fallacy of Weak Induction: Drawing a conclusion based on weak or insufficient evidence, often leading to an unreliable or unjustified inference.
  • Fallacy of the Word Magic: Using vague, abstract, or emotionally charged language to make an argument appear more profound or persuasive than it is.
  • Fallacy of Wishful Thinking: Accepting or endorsing a claim because it is emotionally appealing or because one wishes it to be true.
  • Incomplete Comparison Fallacy: Comparing two items or concepts without considering all relevant factors, leading to an incomplete or misleading conclusion.
  • Nirvana Fallacy: Rejecting a realistic or practical solution or proposal because it is not perfect or ideal, despite being better than the available alternatives.
  • Reification Fallacy: Treating abstract concepts, models, or ideas as if they are concrete or real entities.
  • Relative Privation Fallacy: Dismissing or downplaying a problem or issue by comparing it to a more extreme or severe situation.

Connected Thinking Frameworks

Convergent vs. Divergent Thinking

convergent-vs-divergent-thinking
Convergent thinking occurs when the solution to a problem can be found by applying established rules and logical reasoning. Whereas divergent thinking is an unstructured problem-solving method where participants are encouraged to develop many innovative ideas or solutions to a given problem. Where convergent thinking might work for larger, mature organizations where divergent thinking is more suited for startups and innovative companies.

Critical Thinking

critical-thinking
Critical thinking involves analyzing observations, facts, evidence, and arguments to form a judgment about what someone reads, hears, says, or writes.

Biases

biases
The concept of cognitive biases was introduced and popularized by the work of Amos Tversky and Daniel Kahneman in 1972. Biases are seen as systematic errors and flaws that make humans deviate from the standards of rationality, thus making us inept at making good decisions under uncertainty.

Second-Order Thinking

second-order-thinking
Second-order thinking is a means of assessing the implications of our decisions by considering future consequences. Second-order thinking is a mental model that considers all future possibilities. It encourages individuals to think outside of the box so that they can prepare for every and eventuality. It also discourages the tendency for individuals to default to the most obvious choice.

Lateral Thinking

lateral-thinking
Lateral thinking is a business strategy that involves approaching a problem from a different direction. The strategy attempts to remove traditionally formulaic and routine approaches to problem-solving by advocating creative thinking, therefore finding unconventional ways to solve a known problem. This sort of non-linear approach to problem-solving, can at times, create a big impact.

Bounded Rationality

bounded-rationality
Bounded rationality is a concept attributed to Herbert Simon, an economist and political scientist interested in decision-making and how we make decisions in the real world. In fact, he believed that rather than optimizing (which was the mainstream view in the past decades) humans follow what he called satisficing.

Dunning-Kruger Effect

dunning-kruger-effect
The Dunning-Kruger effect describes a cognitive bias where people with low ability in a task overestimate their ability to perform that task well. Consumers or businesses that do not possess the requisite knowledge make bad decisions. What’s more, knowledge gaps prevent the person or business from seeing their mistakes.

Occam’s Razor

occams-razor
Occam’s Razor states that one should not increase (beyond reason) the number of entities required to explain anything. All things being equal, the simplest solution is often the best one. The principle is attributed to 14th-century English theologian William of Ockham.

Lindy Effect

lindy-effect
The Lindy Effect is a theory about the ageing of non-perishable things, like technology or ideas. Popularized by author Nicholas Nassim Taleb, the Lindy Effect states that non-perishable things like technology age – linearly – in reverse. Therefore, the older an idea or a technology, the same will be its life expectancy.

Antifragility

antifragility
Antifragility was first coined as a term by author, and options trader Nassim Nicholas Taleb. Antifragility is a characteristic of systems that thrive as a result of stressors, volatility, and randomness. Therefore, Antifragile is the opposite of fragile. Where a fragile thing breaks up to volatility; a robust thing resists volatility. An antifragile thing gets stronger from volatility (provided the level of stressors and randomness doesn’t pass a certain threshold).

Ergodicity

ergodicity
Ergodicity is one of the most important concepts in statistics. Ergodicity is a mathematical concept suggesting that a point of a moving system will eventually visit all parts of the space the system moves in. On the opposite side, non-ergodic means that a system doesn’t visit all the possible parts, as there are absorbing barriers

Systems Thinking

systems-thinking
Systems thinking is a holistic means of investigating the factors and interactions that could contribute to a potential outcome. It is about thinking non-linearly, and understanding the second-order consequences of actions and input into the system.

Vertical Thinking

vertical-thinking
Vertical thinking, on the other hand, is a problem-solving approach that favors a selective, analytical, structured, and sequential mindset. The focus of vertical thinking is to arrive at a reasoned, defined solution.

Metaphorical Thinking

metaphorical-thinking
Metaphorical thinking describes a mental process in which comparisons are made between qualities of objects usually considered to be separate classifications.  Metaphorical thinking is a mental process connecting two different universes of meaning and is the result of the mind looking for similarities.

Maslow’s Hammer

einstellung-effect
Maslow’s Hammer, otherwise known as the law of the instrument or the Einstellung effect, is a cognitive bias causing an over-reliance on a familiar tool. This can be expressed as the tendency to overuse a known tool (perhaps a hammer) to solve issues that might require a different tool. This problem is persistent in the business world where perhaps known tools or frameworks might be used in the wrong context (like business plans used as planning tools instead of only investors’ pitches).

Peter Principle

peter-principle
The Peter Principle was first described by Canadian sociologist Lawrence J. Peter in his 1969 book The Peter Principle. The Peter Principle states that people are continually promoted within an organization until they reach their level of incompetence.

Straw Man Fallacy

straw-man-fallacy
The straw man fallacy describes an argument that misrepresents an opponent’s stance to make rebuttal more convenient. The straw man fallacy is a type of informal logical fallacy, defined as a flaw in the structure of an argument that renders it invalid.

Google Effect

google-effect
The Google effect is a tendency for individuals to forget information that is readily available through search engines. During the Google effect – sometimes called digital amnesia – individuals have an excessive reliance on digital information as a form of memory recall.

Streisand Effect

streisand-effect
The Streisand Effect is a paradoxical phenomenon where the act of suppressing information to reduce visibility causes it to become more visible. In 2003, Streisand attempted to suppress aerial photographs of her Californian home by suing photographer Kenneth Adelman for an invasion of privacy. Adelman, who Streisand assumed was paparazzi, was instead taking photographs to document and study coastal erosion. In her quest for more privacy, Streisand’s efforts had the opposite effect.

Compromise Effect

compromise-effect
Single-attribute choices – such as choosing the apartment with the lowest rent – are relatively simple. However, most of the decisions consumers make are based on multiple attributes which complicate the decision-making process. The compromise effect states that a consumer is more likely to choose the middle option of a set of products over more extreme options.

Butterfly Effect

butterfly-effect
In business, the butterfly effect describes the phenomenon where the simplest actions yield the largest rewards. The butterfly effect was coined by meteorologist Edward Lorenz in 1960 and as a result, it is most often associated with weather in pop culture. Lorenz noted that the small action of a butterfly fluttering its wings had the potential to cause progressively larger actions resulting in a typhoon.

IKEA Effect

ikea-effect
The IKEA effect is a cognitive bias that describes consumers’ tendency to value something more if they have made it themselves. That is why brands often use the IKEA effect to have customizations for final products, as they help the consumer relate to it more and therefore appending to it more value.

Ringelmann Effect 

Ringelmann Effect
The Ringelmann effect describes the tendency for individuals within a group to become less productive as the group size increases.

The Overview Effect

overview-effect
The overview effect is a cognitive shift reported by some astronauts when they look back at the Earth from space. The shift occurs because of the impressive visual spectacle of the Earth and tends to be characterized by a state of awe and increased self-transcendence.

House Money Effect

house-money-effect
The house money effect was first described by researchers Richard Thaler and Eric Johnson in a 1990 study entitled Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice. The house money effect is a cognitive bias where investors take higher risks on reinvested capital than they would on an initial investment.

Heuristic

heuristic
As highlighted by German psychologist Gerd Gigerenzer in the paper “Heuristic Decision Making,” the term heuristic is of Greek origin, meaning “serving to find out or discover.” More precisely, a heuristic is a fast and accurate way to make decisions in the real world, which is driven by uncertainty.

Recognition Heuristic

recognition-heuristic
The recognition heuristic is a psychological model of judgment and decision making. It is part of a suite of simple and economical heuristics proposed by psychologists Daniel Goldstein and Gerd Gigerenzer. The recognition heuristic argues that inferences are made about an object based on whether it is recognized or not.

Representativeness Heuristic

representativeness-heuristic
The representativeness heuristic was first described by psychologists Daniel Kahneman and Amos Tversky. The representativeness heuristic judges the probability of an event according to the degree to which that event resembles a broader class. When queried, most will choose the first option because the description of John matches the stereotype we may hold for an archaeologist.

Take-The-Best Heuristic

take-the-best-heuristic
The take-the-best heuristic is a decision-making shortcut that helps an individual choose between several alternatives. The take-the-best (TTB) heuristic decides between two or more alternatives based on a single good attribute, otherwise known as a cue. In the process, less desirable attributes are ignored.

Bundling Bias

bundling-bias
The bundling bias is a cognitive bias in e-commerce where a consumer tends not to use all of the products bought as a group, or bundle. Bundling occurs when individual products or services are sold together as a bundle. Common examples are tickets and experiences. The bundling bias dictates that consumers are less likely to use each item in the bundle. This means that the value of the bundle and indeed the value of each item in the bundle is decreased.

Barnum Effect

barnum-effect
The Barnum Effect is a cognitive bias where individuals believe that generic information – which applies to most people – is specifically tailored for themselves.

Anchoring Effect

anchoring-effect
The anchoring effect describes the human tendency to rely on an initial piece of information (the “anchor”) to make subsequent judgments or decisions. Price anchoring, then, is the process of establishing a price point that customers can reference when making a buying decision.

Decoy Effect

decoy-effect
The decoy effect is a psychological phenomenon where inferior – or decoy – options influence consumer preferences. Businesses use the decoy effect to nudge potential customers toward the desired target product. The decoy effect is staged by placing a competitor product and a decoy product, which is primarily used to nudge the customer toward the target product.

Commitment Bias

commitment-bias
Commitment bias describes the tendency of an individual to remain committed to past behaviors – even if they result in undesirable outcomes. The bias is particularly pronounced when such behaviors are performed publicly. Commitment bias is also known as escalation of commitment.

First-Principles Thinking

first-principles-thinking
First-principles thinking – sometimes called reasoning from first principles – is used to reverse-engineer complex problems and encourage creativity. It involves breaking down problems into basic elements and reassembling them from the ground up. Elon Musk is among the strongest proponents of this way of thinking.

Ladder Of Inference

ladder-of-inference
The ladder of inference is a conscious or subconscious thinking process where an individual moves from a fact to a decision or action. The ladder of inference was created by academic Chris Argyris to illustrate how people form and then use mental models to make decisions.

Goodhart’s Law

goodharts-law
Goodhart’s Law is named after British monetary policy theorist and economist Charles Goodhart. Speaking at a conference in Sydney in 1975, Goodhart said that “any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes.” Goodhart’s Law states that when a measure becomes a target, it ceases to be a good measure.

Six Thinking Hats Model

six-thinking-hats-model
The Six Thinking Hats model was created by psychologist Edward de Bono in 1986, who noted that personality type was a key driver of how people approached problem-solving. For example, optimists view situations differently from pessimists. Analytical individuals may generate ideas that a more emotional person would not, and vice versa.

Mandela Effect

mandela-effect
The Mandela effect is a phenomenon where a large group of people remembers an event differently from how it occurred. The Mandela effect was first described in relation to Fiona Broome, who believed that former South African President Nelson Mandela died in prison during the 1980s. While Mandela was released from prison in 1990 and died 23 years later, Broome remembered news coverage of his death in prison and even a speech from his widow. Of course, neither event occurred in reality. But Broome was later to discover that she was not the only one with the same recollection of events.

Crowding-Out Effect

crowding-out-effect
The crowding-out effect occurs when public sector spending reduces spending in the private sector.

Bandwagon Effect

bandwagon-effect
The bandwagon effect tells us that the more a belief or idea has been adopted by more people within a group, the more the individual adoption of that idea might increase within the same group. This is the psychological effect that leads to herd mentality. What in marketing can be associated with social proof.

Moore’s Law

moores-law
Moore’s law states that the number of transistors on a microchip doubles approximately every two years. This observation was made by Intel co-founder Gordon Moore in 1965 and it become a guiding principle for the semiconductor industry and has had far-reaching implications for technology as a whole.

Disruptive Innovation

disruptive-innovation
Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.

Value Migration

value-migration
Value migration was first described by author Adrian Slywotzky in his 1996 book Value Migration – How to Think Several Moves Ahead of the Competition. Value migration is the transferal of value-creating forces from outdated business models to something better able to satisfy consumer demands.

Bye-Now Effect

bye-now-effect
The bye-now effect describes the tendency for consumers to think of the word “buy” when they read the word “bye”. In a study that tracked diners at a name-your-own-price restaurant, each diner was asked to read one of two phrases before ordering their meal. The first phrase, “so long”, resulted in diners paying an average of $32 per meal. But when diners recited the phrase “bye bye” before ordering, the average price per meal rose to $45.

Groupthink

groupthink
Groupthink occurs when well-intentioned individuals make non-optimal or irrational decisions based on a belief that dissent is impossible or on a motivation to conform. Groupthink occurs when members of a group reach a consensus without critical reasoning or evaluation of the alternatives and their consequences.

Stereotyping

stereotyping
A stereotype is a fixed and over-generalized belief about a particular group or class of people. These beliefs are based on the false assumption that certain characteristics are common to every individual residing in that group. Many stereotypes have a long and sometimes controversial history and are a direct consequence of various political, social, or economic events. Stereotyping is the process of making assumptions about a person or group of people based on various attributes, including gender, race, religion, or physical traits.

Murphy’s Law

murphys-law
Murphy’s Law states that if anything can go wrong, it will go wrong. Murphy’s Law was named after aerospace engineer Edward A. Murphy. During his time working at Edwards Air Force Base in 1949, Murphy cursed a technician who had improperly wired an electrical component and said, “If there is any way to do it wrong, he’ll find it.”

Law of Unintended Consequences

law-of-unintended-consequences
The law of unintended consequences was first mentioned by British philosopher John Locke when writing to parliament about the unintended effects of interest rate rises. However, it was popularized in 1936 by American sociologist Robert K. Merton who looked at unexpected, unanticipated, and unintended consequences and their impact on society.

Fundamental Attribution Error

fundamental-attribution-error
Fundamental attribution error is a bias people display when judging the behavior of others. The tendency is to over-emphasize personal characteristics and under-emphasize environmental and situational factors.

Outcome Bias

outcome-bias
Outcome bias describes a tendency to evaluate a decision based on its outcome and not on the process by which the decision was reached. In other words, the quality of a decision is only determined once the outcome is known. Outcome bias occurs when a decision is based on the outcome of previous events without regard for how those events developed.

Hindsight Bias

hindsight-bias
Hindsight bias is the tendency for people to perceive past events as more predictable than they actually were. The result of a presidential election, for example, seems more obvious when the winner is announced. The same can also be said for the avid sports fan who predicted the correct outcome of a match regardless of whether their team won or lost. Hindsight bias, therefore, is the tendency for an individual to convince themselves that they accurately predicted an event before it happened.

Read Next: BiasesBounded RationalityMandela EffectDunning-Kruger EffectLindy EffectCrowding Out EffectBandwagon Effect.

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