A focused collection of ideas, frameworks and practical lessons from the Millionaire Lesson library.
The representativeness heuristic is the tendency to judge probability by how much something resembles a stereotype or prototype rather than by fully integrating base rates…
Read articleBase-rate neglect occurs when people underweight general prevalence information in favor of specific case information that may be less diagnostic.
Read articleThe illusion of control is the tendency to believe one's actions influence outcomes that are partly or largely determined by chance or uncontrollable factors.
Read articlePresent bias is the tendency to give disproportionate weight to immediate costs and rewards relative to delayed outcomes.
Read articleThe gambler's fallacy is the belief that a random event becomes more likely to reverse after a streak even when trials are independent.
Read articleTemporal discounting describes the decline in subjective value of an outcome as the delay before receiving it increases.
Read articleConfirmation bias examples show how people can preferentially search for, interpret, remember, or weight information that supports an existing belief or favored hypothesis.
Read articleOptimism bias is the tendency for people to expect more favorable personal outcomes than objective evidence or comparison groups would justify.
Read articleAnchoring bias examples illustrate how an initial number or reference point can pull later estimates and evaluations toward it even when the anchor is arbitrary…
Read articleNegativity bias refers to the tendency for negative events, information, or outcomes to have stronger effects on attention, learning, memory, and evaluation than equally intense…
Read articleFraming effects occur when different presentations of equivalent or closely related information change preferences, judgments, or behavior.
Read articleHindsight bias is the tendency to see an outcome as more foreseeable or inevitable after learning what happened.
Read article