Cognitive Bias
Cognitive bias is a distortion in the way we perceive reality. This concept provides a comprehensive review of the cognitive bias that can affect individuals and organisations. You will also gain an understanding of the different kinds of biases and how to use techniques to level the playing field.
Technique Overview
Cognitive Bias Definition
Cognitive bias refers to a mental error caused by simplified information processing strategies employed by our subconscious mind. Generally, human cognitive limitations allow people to use simplifying strategies to mentally process information. These strategies are useful as they help individuals deal with complexity and ambiguity. However, they can lead to predictable faulty judgements known as cognitive biases (Tversky & Kahneman, 1974). Cognitive biases are widely studied by behavioural economists, who examine how these biases influence decision-making (Swan, 2023).
Cognitive Bias Description *
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Business Evidence
Strengths, weaknesses and examples of Cognitive Bias *
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Business Application
Implementation, success factors and measures of Cognitive Bias *
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Professional Tools
Cognitive Bias videos and downloads *
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Further Reading
Cognitive Bias web and print resources *
Cognitive Bias references (4 of up to 20) *
- Chen, Y. (2025). A Manager and an AI Walk into a Bar: Does ChatGPT Make Biased Decisions Like We Do? Manufacturing & Service Operations Management, 27(2), 291–310. [Online] Available at: https://doi.org/10.1287/msom.2023.0279
- Cummins, R.A. and Nistico, H. (2002) ‘Maintaining life satisfaction: The role of positive cognitive bias’, Journal of Happiness Studies, 3, pp. 37–69. https://doi.org/10.1023/A:1015678915305
- Deshpande, K. (2024). Reducing cognitive biases in strategic business decisions: A framework for enhanced leadership and organizational success. Development and Learning in Organizations, 38(5). [Online] Available at: https://doi.org/10.1108/DLO-11-2024-0330
- Ebbinghaus, H. (1913). Memory: A contribution to experimental psychology, 1885 (trans: Ruger, H. A., & Bussenius, C. E.). New York: Columbia University. Teachers College. Educational reprints. https://doi.org/10.1037/10011-000
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