Kennon-Green & Co. Fiduciary Financial Advisor, Wealth Management, Global Value Investing

Cognitive Bias Encyclopedia [Under Construction]

Reference Guide to Cognitive Biases

This collection of cognitive biases, part of my larger reference guide to mental models, is meant to help you learn some of the things that might influence your perceptions in ways that make recognizing reality more difficult. You may also want to check out the related Logical Fallacy guide, and parent mental model guide, which links to mental models in various disciplines including economics, mathematics, biology, and more.


Optimism Bias Cognitive Bias

Optimism Bias

Optimism bias, sometimes referred to as unrealistic bias or comparative optimism, is a particularly powerful mental model because it causes a person to believe he or she is less likely to experience a negative event than members of the general population with statistically identical risk factors.