4 After a banner day out, I drove until we were situated under a big old oak tree on a hill off the expressway. What I had in mind was a little eccentric. I thought the venue with a perfect view of the luminous city would lighten the mood. W...
The appeal to authority doesn’t support the conclusion that climate change isn’t real because there is strong evidence to the contrary. Other interesting articles If you want to know more about fallacies, research bias, or AI tools, make sure to check out some of our other articles with ...
Instigator Theory is the idea that sometimes it’s easier to change the rest of the world than it is to change your own team. In other words, it’s about working from the outside in, instead of from the inside out. The Snowflake Fallacy Tell me if you’ve heard this one before: ...
Another area where the sunk cost fallacy can have a profound effect is in career choices. Many of us find ourselves stuck in a job or career path that no longer aligns with our goals or interests but hesitate to make a change because of the time, effort, or education we’ve already put...
Base Rate Fallacy is our tendency to give more weight to the event-specific information than we should, and sometimes even ignore base rates entirely.
The narrative fallacy actually came into popular literature after the 2008 subprime mortgage fiasco. It was made popular by Nicholas Naseem Taleb, who mentioned it in his book called “Fooled by Randomness.” Ever since it has become an important subject of study in behavioral finance. Why do ...
Circular cause and consequence– where the consequence of the phenomenon is claimed to be its root cause. Continuum fallacy(fallacy of the beard, line-drawing fallacy, sorites fallacy, fallacy of the heap, bald man fallacy) – improperly rejecting a claim for being imprecise.[25] ...
The use of logical fallacies is directly connected to the “Idol of the Cave,” where the individual believe in false notion based off their background and relationships amongst one another. Indirectly stating how individuals’ personal understanding was influenced by others and criticizing, exemplifies...
Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information....
TheSunk Cost Fallacyis a cognitive bias in behavioral finance where investors have a tendency to continue a strategy because of their reluctance to forego the capital, time, and effort invested to date. On the subject of investing, the sunk cost bias causes investors and market participants to ...