Examples of Self-Attribution, Hindsight, and Confirmation Bias
1) One of the most fascinating things in this class to me is the question of why don’t human beings learn from our mistakes more. We seem to make the same mistakes over and over again. In your own life give me one example of how you were guilty of:
Self-attribution bias
Hindsight bias
Confirmation bias
Cognitive dissonance
If you can’t think of examples where you yourself have done this—maybe you can think of examples from your friends and family.
2) Watch this short video (3 minutes or so) (https://www(dot)youtube(dot)com/watch?v=O567TMy9E5k). In order to safeguard your portfolio from overconfidence, what does he recommend? Why? He gives four recommendations.
3) Watch Robert Shiller (Professor at Yale and Nobel Laureate) teaching a bit in this video: https://www(dot)youtube(dot)com/watch?v=chSHqogx2CI
Then Watch the above video from 57:17 to minute 1:05:20 or so (so about 8 minutes total). This video is about cognitive dissonance. Tell me what did find out about financial advisors? Why did the advisors to this?
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Week 8 Discussion
Question 1
Self-attribution bias – A simple example of this entails the time when I truly believed that I had passed a certain test because I thought I was simply good in the subject involved. In grade 6, I passed a math test that made me believe that I was good at math. I believed that my hard work and attention to detail had paid off and that I had turned the tide considering this was the first time where I had the highest score in math in our class.
Hindsight bias – This happens to me more often than I would want to admit, especially in sports. For example, I am a big Stephen Curry fan. He plays in the NBA for the Golden State Warriors, and during the 2019 NBA finals, it was difficult for me to admit that his team lost. I remember getting to a point where I started to find events leading to the finals and sort of convincing myself that I saw their loss coming.
Confirmation bias – The experience here relates to the experience of self-attribution bias. Before I got the test results, my father had always told me that I was as good in math as he was while in school. He believed that my siblings and I were gifted in math because he was. So, when I brought home the results, he was elated and interpreted the results to confirm his earlier statement.
Cognitive dissonance – one of my most recurring cognitive dissonance experiences entails eating chicken. I love chicken, and though I make sure that I do not over-indulge, I often find myself watching or involved in a conversation about how farmers offer inhumane conditions to chickens. Such conversations have me conflicted because, in as much as I love chicken, I know it is wrong to treat animals as inhuman...
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