Tricky Or Creative Mind.

  

Whenever we do something we always judge the thing's and there are certain judgment errors that we are prone to making, known in the field of psychology as cognitive biases.  They happen to everyday regardless of age,gender,education, intelligence or other factors.  Some of them are well known others not, but all of the are interesting I am sure everyone will find that one has happened to them.  The human mind is a wonderful thing.  Cognition, the act or process of thinking enables us to process vast amounts of information quickly.  For example every time your eyes are open, you brain is constantly being bombarded with stimuli.  You may be consciously thinking about one specific thing, but you brain is processing thousands of subconscious ideas.

Self-fulfilling prophecy

Self-fulfilling prophecy is engaging in behaviors that obtain results that confirm existing attitudes.  A self-fulfilling prophecy is a prediction that  causes itself to become true.  For example, I believe that I am going to do poorly in school, so I decrease the effort I put into my assignment and studying and I end up doing poorly, just as I thought.  Another common example is relationship; I think my relationship with my significant other is going to fail, so I start acting differently, pulling away emotional.  Because of my actions, I actually cause the relationship to fail.  This is a powerful tool used by "psychics" they implant an idea in your mind, and  you eventually make it happen because you think will.  Interesting Fact:Economic Recessions are self-fulfilling prophecies.

The second major thing of our mind id HALO EFFECT

Halo Effect

The Halo Effect is the tendency for individual's positive or negative trait to "spill over" to other areas of their personality in others' perceptions of them.  This bias happens a lot in employee performance appraisals.  For example:  my employee , Biff has been late to work the past three days; I notice this and conclude that Biff is lazy and does not care about his job. there are many possible reason why Bife was late, perhaps care broke down or anything could be the reason. The problem is, because of one negative aspect that may be out of Biff's control. I assume that he is a bad worker . Interesting Fact: The physical attractiveness stereotype is individuals posses other socially desirable qualities, Such as happiness, success, and intelligence.  This becomes a self-fulfilling prophecy when attractive people are given privileged treatment such as better job opportunities and higher salaries.

Gambler's Fallacy 

The Gabler's fallacy is the tendency to think that future probabilities are altered by past events, when in reality they are not. Certain probabilities, such as getting a heads when you flip a (fair) coin, are always the same. The probability of getting a heads is 50% it does not matter if you've gotten tails last 10 flips.  Thinking that probabilities have changed is a common bias, especially when gambling.  for example, I am playing roulette.  The last four spins have landed on black, it has to be red this time right? Wrong! The probability of landing of landing on red is still 47.37% (18 red spots divided by 38 total spots). This may sound obvious but this bias caused many a gambler to lose money thinking the probabilities have changed

Hyperbolic Discounting 

Hyperbolic Discounting is the tendency for people to prefer a smaller, immediate payoff over a larger, delayed payoff.  Much research has been done on decision making process.  Interestingly , delay time is a big factor in choosing an alternative.  Put simply, most people would choose to get 20 dollars today instead of getting 100 dollars one year from today.  Normally it makes sense to choose a greater amount of money immediately than less in the future, as the value of a dollar is worth more today that it is tomorrow.  Assume that the interest rate is 9% at this interest rate, a rational person would be indifferent to taking $91.74 now or $100 a year from now.  However, it is interesting how much less we are willing to take immediately rather then wait, would you rather have $100 a year from now, or 50 immediately ? How about $40 immediately? Where do you draw the line?2

The tendency for people to continue to support previously unsuccessful endeavors.  With all the decisions people have to make, it is unavoidable that some will be unsuccessful. of course, the logical thing to do in these instances is to change that decision or try to reverse it.  However, sometimes individuals feel compelled not only stick with their decision, but also to further invest in that decision because they have sunk costs.  For example, say you use half of your life savings to start a business. After 6 months, it is evident that the business. However due to the sunk costs of life savings, you feel committed to the business and invest more money into the project hoping that the additional cash will turn the business around.

Reactance

Reactance is the urge to do the opposite of what someone wants you to do out of a need to resist a perceived attempt to constrain your freedom of choice. This is common with rebellious teenagers, but any attempt to resist authority due to perceived threats to freedom and or choice is Reactance. The individual may not have a need to do the specific behavior, however the fact that they cannot do it makes them want to interesting Fact ; "reverse psychology" is an attempt to influence people using reactance.  Tell someone (particularly children ) to do the opposite of what you really want, and they will rebel and actually end up doing what you want.

Thanks

Lokesh Kumar