Misc
50 Cognitive Biases in the Modern World
50 Cognitive Biases in the Modern World
Cognitive biases are widely accepted as something that makes us human.
Every day, systematic errors in our thought process impact the way we live and work. But in a world where everything we do is changing rapidly—from the way we store information to the way we watch TV—what really classifies as rational thinking?
It’s a question with no right or wrong answer, but to help us decide for ourselves, today’s infographic from TitleMax lists 50 cognitive biases that we may want to become privy to.
In the name of self-awareness, here’s a closer look at three recently discovered biases that we are most prone to exhibiting in the modern world.
Automation Bias
AI-infused applications are becoming incredibly good at “personalizing” our content, but will there come a time when we let algorithms make all of our decisions?
Automation bias refers to the tendency to favor the suggestions of automated systems.
Take Netflix, for example. Everything we see on the platform is the result of algorithms—even the preview images that are generated. Then, to harness the power of data and machine learning, Netflix categorizes its content into tens of thousands of micro-genres. Pairing these genre tags with a viewer’s history allows them to assign several of over 2,000 “taste profiles” to each user.
And while there’s nothing wrong with allowing Netflix to guide what we watch, there’s an enormous sea of content standing by. Estimates from 2015 claimed it would take nearly four years to watch all of Netflix’s content. Thousands more hours of content have since been added.
If we want to counter this cognitive bias, finding a new favorite series on platforms like Netflix may require some good old-fashioned human curiosity.
The Google Effect
Also known as “digital amnesia”, the aptly named Google Effect describes our tendency to forget information that can be easily accessed online.
First described in 2011 by Betsy Sparrow (Columbia University) and her colleagues, their paper described the results of several memory experiments involving technology.
In one experiment, participants typed trivia statements into a computer and were later asked to recall them. Half believed the statements were saved, and half believed the statements were erased. The results were significant: participants who assumed they could look up their statements did not make much effort to remember them.
Because search engines are continually available to us, we may often be in a state of not feeling we need to encode the information internally. When we need it, we will look it up.
– Sparrow B, et al. Science 333, 777 (2011)
Our modern brains appear to be re-prioritizing the information we hold onto. Notably, the study doesn’t suggest we’re becoming less intelligent—our ability to learn offline remains the same.
The IKEA Effect
Identified in 2011 by Michael Norton (Harvard Business School) and his colleagues, this cognitive bias refers to our tendency to attach a higher value to things we help create.
Combining the Ikea Effect with other related traits, such as our willingness to pay a premium for customization, is a strategy employed by companies seeking to increase the intrinsic value that we attach to their products.
For instance, American retailer Build-A-Bear Workshop is anchored around creating a highly interactive customer experience. With the help of staff, children (or adults) can assemble their stuffed animals from scratch, then add clothing and accessories at extra cost.
Nike also incorporates this bias into its offering. The footwear company offers a Nike By You line of customizable products, where customers pay a premium to design bespoke shoes with an extensive online configurator.
While there’s nothing necessarily wrong with our susceptibility to the Ikea Effect, understanding its significance may help us make more appropriate decisions as consumers.
What Can We Do?
As we navigate an increasingly complex world, it’s natural for us to unconsciously adopt new patterns of behavior.
Becoming aware of our cognitive biases, and their implications, can help us stay on the right course.
United States
Mapped: How Much Does it Take to be the Top 1% in Each U.S. State?
An annual income anywhere between $360,000-$950,000 can grant entry into the top 1%—depending on where you live in America.

How Much Does it Take to be the Top 1% in Each U.S. State?
There’s an old saying: everyone thinks that they’re middle-class.
But how many people think, or know, that they really belong to the top 1% in the country?
Data from personal finance advisory services company, SmartAsset, reveals the annual income threshold at which a household can be considered part of the top 1% in their state.
Some states demand a much higher yearly earnings from their residents to be a part of the rarefied league, but which ones are they, and how much does one need to earn to make it to the very top echelon of income?
Ranking U.S. States By Income to Be in the Top 1%
At the top of the list, a household in Connecticut needs to earn nearly $953,000 annually to be part of the one-percenters. This is the highest minimum threshold across the country.
In the same region, Massachusetts requires a minimum annual earnings of $903,401 from its top 1% residents.
Here’s the list of all 50 U.S. states along with the annual income needed to be in the 1%.
Rank | State | Top 1% Income Threshold | Top 1% Tax Rate (% of annual income) |
---|---|---|---|
1 | Connecticut | $952,902 | 28.40% |
2 | Massachusetts | $903,401 | 27.15% |
3 | California | $844,266 | 26.95% |
4 | New Jersey | $817,346 | 28.01% |
5 | Washington | $804,853 | 25.99% |
6 | New York | $776,662 | 28.29% |
7 | Colorado | $709,092 | 25.86% |
8 | Florida | $694,987 | 25.82% |
9 | Illinois | $660,810 | 26.35% |
10 | New Hampshire | $659,037 | 26.25% |
11 | Wyoming | $656,118 | 24.79% |
12 | Virginia | $643,848 | 26.11% |
N/A | National Average | $652,657 | N/A |
13 | Maryland | $633,333 | 25.94% |
14 | Texas | $631,849 | 25.83% |
15 | Utah | $630,544 | 23.77% |
16 | Minnesota | $626,451 | 25.53% |
17 | Nevada | $603,751 | 25.19% |
18 | South Dakota | $590,373 | 22.99% |
19 | Pennsylvania | $588,702 | 24.95% |
20 | North Dakota | $585,556 | 24.76% |
21 | Georgia | $585,397 | 25.06% |
22 | Oregon | $571,813 | 24.66% |
23 | Arizona | $564,031 | 25.22% |
24 | Idaho | $560,040 | 23.17% |
25 | North Carolina | $559,762 | 25.31% |
26 | Montana | $559,656 | 24.46% |
27 | Kansas | $554,912 | 25.03% |
28 | Rhode Island | $548,531 | 25.26% |
29 | Tennessee | $548,329 | 25.12% |
30 | Alaska | $542,824 | 25.38% |
31 | Nebraska | $535,651 | 24.10% |
32 | Delaware | $529,928 | 25.37% |
33 | Vermont | $518,039 | 23.63% |
34 | Wisconsin | $517,321 | 24.90% |
35 | South Carolina | $508,427 | 24.40% |
36 | Michigan | $504,671 | 25.01% |
37 | Maine | $502,605 | 24.04% |
38 | Missouri | $500,626 | 24.93% |
39 | Ohio | $500,253 | 25.09% |
40 | Hawaii | $495,263 | 24.12% |
41 | Iowa | $483,985 | 24.09% |
42 | Indiana | $473,685 | 24.55% |
43 | Alabama | $470,341 | 23.82% |
44 | Oklahoma | $460,172 | 23.68% |
45 | Louisiana | $458,269 | 24.80% |
46 | Arkansas | $450,700 | 21.11% |
47 | Kentucky | $445,294 | 24.14% |
48 | New Mexico | $411,395 | 23.35% |
49 | Mississippi | $381,919 | 23.04% |
50 | West Virginia | $367,582 | 23.26% |
N/A | National Median Household Income | $75,000 | N/A |
California ($844,266), New Jersey ($817,346), and Washington ($804,853) round out the top five states with the highest minimum thresholds to make it to their exclusive rich club.
On the other end of the spectrum, the top one-percenters in West Virginia make a minimum of $367,582 a year, the lowest of all the states, and about one-third of the threshold in Connecticut. And just down southwest of the Mountain State, Mississippi’s one-percenters need to make at least $381,919 a year to qualify for the 1%.
A quick glance at the map above also reveals some regional insights.
The Northeast and West Coast, with their large urban and economic hubs, have higher income entry requirements for the top 1% than states in the American South.
This also correlates to the median income by state, a measure showing Massachusetts households make nearly $90,000 a year, compared to Mississippians who take home $49,000 annually.
How Much Do the Top 1% Pay in Taxes?
Meanwhile, if one does make it to the top 1% in states like Connecticut and Massachusetts, expect to pay more in taxes than other states, according to SmartAsset’s analysis.
The one-percenters in the top five states pay, on average, between 26–28% of their income in tax, compared to those in the bottom five who pay between 21–23%.
And this pattern exists through the dataset, with higher top 1% income thresholds correlating with higher average tax rates for the wealthy.
State Ranks | Median Tax Rate |
---|---|
Top 10 | 26.65% |
20-30 | 25.09% |
30-40 | 24.65% |
10-20 | 25.07% |
40-50 | 23.75% |
These higher tax rates point to attempts to reign in the increasing wealth disparity in the nation where the top 1% hold more than one-third of the country’s wealth, up from 27% in 1989.
Where Does This Data Come From?
Source: SmartAsset’s America’s Top 1% Is Different in Each State uses data from 2020 individual tax filings from the IRS, adjusted to 2023 dollars using the Bureau of Labor Statistics’ Consumer Price Index.
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