Misc
18 Cognitive Bias Examples Show Why Mental Mistakes Get Made
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18 Cognitive Bias Examples
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Out of the 188 cognitive biases that exist, there is a much narrower group of biases that has a disproportionately large effect on the ways we do business.
These are things that affect workplace culture, budget estimates, deal outcomes, and our perceived return on investments within the company.
Mental mistakes such as these can add up quickly, and can hamper any organization in reaching its full bottom line potential.
Cognitive Bias Examples
Today’s infographic from Raconteur aptly highlights 18 different cognitive bias examples that can create particularly difficult challenges for company decision-making.
The list includes biases that fall into categories such as financial, social, short term-ism, and failure to estimate:
Financial biases
These are imprecise mental shortcuts we make with numbers, such as hyperbolic discounting – the mistake of preferring a smaller, sooner payoff instead of a larger, later reward. Another classic financial cognitive bias example is the “Ostrich effect”, which is where one sticks their head in the sand, pretending that negative financial information simply doesn’t exist.
Social biases
Social biases can have a big impact on teams and company culture. For example, teams can bandwagon (when people do something because other people are doing it), and individual team members can engage in blind spot bias (viewing oneself as less biased than others). These both can lead to worse decision-making.
Short Term-isms
One way to ensure a business that doesn’t last? Engage in short term-isms – fallacies that gear your business towards decisions that can be rationalized now, but that don’t add any long-term value. Status quo bias and anchoring are two ways this can happen.
Failure to Estimate
So much about business relies on making projections about the future, and the biases in this category make it difficult to make accurate estimates. Cognitive bias examples here include the availability heuristic (just because information is available, means it must be true), and the gambler’s fallacy (future probabilities are altered by past events).
Want more on cognitive biases? Here are five main biases that impact investors, specifically.
Misc
Ranked: The World’s Top 10 Automotive Exporters (2000-2022)
Data from the World Trade Organization highlights the world’s 10 largest automotive exporters in 2022.
Ranked: The World’s Top 10 Automotive Exporters
According to the European Automobile Manufacturers’ Association, over 85 million motor vehicles were built around the world in 2022.
In this graphic, we add context to this massive figure by ranking the world’s 10 largest automotive exporters. The list is based on data from the World Trade Organization (WTO) and includes countries from nearly every corner of the world, highlighting the global nature of the industry.
Top 10 Exporting Countries
The data we used to create this graphic is included in the table below. It represents each country’s share of the total export value of global automotive products in both 2000 and 2022.
“Automotive products” are defined by the WTO as motor vehicles, parts and accessories for motor vehicles, and internal combustion engines for propelling said vehicles. This grouping excludes motorcycles and trailers.
| Exporter | 2000 (% of world exports) | 2022 (% of world exports) | Change (pp) |
|---|---|---|---|
| 🇪🇺 EU | 45.4% | 46.1% | +0.7 |
| 🇺🇸 U.S. | 11.7% | 9.1% | -2.6 |
| 🇯🇵 Japan | 15.3% | 8.9% | -6.4 |
| 🇲🇽 Mexico | 5.3% | 8.5% | +3.2 |
| 🇨🇳 China | 0.3% | 8.0% | +7.7 |
| 🇰🇷 South Korea | 2.6% | 5.1% | +2.5 |
| 🇨🇦 Canada | 10.5% | 3.3% | -7.2 |
| 🇬🇧 UK | 4.5% | 2.7% | -1.8 |
| 🇹🇭 Thailand | 0.4% | 2.0% | +1.6 |
| 🇹🇷 Türkiye | 0.3% | 1.7% | +1.4 |
| Total | 96.3% | 95.4% | -- |
From this list we can identify which countries have experienced the most growth or decline over the past 22 years.
Countries With the Most Growth Since 2000
The automotive exporters that grew their share of global value the most since 2000 are China (+7.7 pp), Mexico (+3.2 pp), and South Korea (+2.5 pp).
There are clear drivers behind each of these growth stories.
For example, China became the world’s largest car market back in 2009, which accelerated the growth of its domestic automakers. China is also home to some of the world’s biggest automotive suppliers, including Weichai (diesel engines), Hasco Automotive (drivetrain and air conditioning systems), and CATL (EV batteries).
Mexico, on the other hand, has grown its auto industry by enticing global brands to construct their factories there. The country’s competitive edge includes cheaper labor and a land border to the United States.
Finally there’s South Korea, whose growth is largely attributed to Hyundai Motor Company. The Seoul-based automaker recently became the third largest on a global basis, trailing only Toyota and Volkswagen.
Countries With the Biggest Decline Since 2000
The automotive exporters that declined the most since 2000 are Canada (-7.2 pp), Japan (-6.4 pp), and the U.S. (-2.6 pp).
Canada’s auto industry has experienced a steady decline in recent years, though new EV-related investments could turn things around. In March 2022, Stellantis and LG Energy Solutions announced the construction of a $3.5 billion EV battery plant in Windsor, Ontario.
Canada’s automotive industry is largely concentrated in the province of Ontario, which neighbors Michigan, the top state for U.S. car production.
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