Misc

Every Single Cognitive Bias in One Infographic

Published

2 years ago

August 26, 2021

Jeff Desjardins

View a high resolution version of this graphic

Every Single Cognitive Bias in One Infographic

View the high resolution version of today’s graphic by clicking here.

The human brain is capable of incredible things, but it’s also extremely flawed at times.

Science has shown that we tend to make all sorts of mental mistakes, called “cognitive biases”, that can affect both our thinking and actions. These biases can lead to us extrapolating information from the wrong sources, seeking to confirm existing beliefs, or failing to remember events the way they actually happened!

To be sure, this is all part of being human—but such cognitive biases can also have a profound effect on our endeavors, investments, and life in general.

For this reason, today’s infographic from DesignHacks.co is particularly handy. It shows and groups each of the 188 known confirmation biases in existence.

What is a Cognitive Bias?

Humans have a tendency to think in particular ways that can lead to systematic deviations from making rational judgments.

These tendencies usually arise from:

Information processing shortcuts
The limited processing ability of the brain
Emotional and moral motivations
Distortions in storing and retrieving memories
Social influence

Cognitive biases have been studied for decades by academics in the fields of cognitive science, social psychology, and behavioral economics, but they are especially relevant in today’s information-packed world. They influence the way we think and act, and such irrational mental shortcuts can lead to all kinds of problems in entrepreneurship, investing, or management.

Cognitive Bias Examples

Here are five examples of how these types of biases can affect people in the business world:

1. Familiarity Bias: An investor puts her money in “what she knows”, rather than seeking the obvious benefits from portfolio diversification. Just because a certain type of industry or security is familiar doesn’t make it the logical selection.

2. Self-Attribution Bias: An entrepreneur overly attributes his company’s success to himself, rather than other factors (team, luck, industry trends). When things go bad, he blames these external factors for derailing his progress.

3. Anchoring Bias: An employee in a salary negotiation is too dependent on the first number mentioned in the negotiations, rather than rationally examining a range of options.

4. Survivorship Bias: Entrepreneurship looks easy, because there are so many successful entrepreneurs out there. However, this is a cognitive bias: the successful entrepreneurs are the ones still around, while the millions who failed went and did other things.

5. Gambler’s Fallacy: A venture capitalist sees a portfolio company rise and rise in value after its IPO, far behind what he initially thought possible. Instead of holding on to a winner and rationally evaluating the possibility that appreciation could still continue, he dumps the stock to lock in the existing gains.

This post was first published in 2017. We have since updated it, adding in new content for 2021.

Related Topics:psychology cognitive bias mental thinking behavioral economics

Up Next

This is the Language Each Country Wants to Learn the Most

Don't Miss

All the Biomass of Earth, in One Graphic

Click for Comments

Demographics

Comparing Population Pyramids Around the World

Population pyramids can show a country’s demographic advantages and challenges at a glance. See how different parts of the world stack up.

Published

6 hours ago

June 1, 2023

Niccolo Conte

Visualization of population pyramids of China, India, U.S., and Japan compared

Understanding and Comparing Population Pyramids

Demographic data can reveal all kinds of insights about a population, from the country’s fertility and mortality rates to how certain events and policies have shaped the makeup of a population.

Population pyramids are one of the best ways to visualize population data, and comparing the pyramids of various countries and regions side-by-side can reveal unexpected insights and differences between groups.

This graphic uses population data from the United Nations to compare the demographics of some select nations and regions of the world, showcasing how much age distributions can vary.

Three Types of Population Pyramids

Although population pyramids can come in all shapes and sizes, most generally fall into three distinct categories:

Expansive Pyramids: Recognized by their traditional “pyramid-like” shape with a broad base and narrow top, expansive pyramids reflect a population with a high birth rate along with a high mortality rate which is most common in developing countries.
Constrictive Pyramids: With a narrow base and thicker middle and top sections of the pyramid, constrictive pyramids often occur in developed economies whose populations have low birth rates and long life expectancies.
Stationary Pyramids: These pyramids showcase an evenly distributed population across age groups, often found in newly-developed countries which have stable birth and mortality rates.

Each population pyramid is essentially a visual snapshot of a nation’s current demographic breakdown, shaped by fluctuating birth and mortality rates as well as changes to immigration and social policies.

Understanding the inherent risks associated with different pyramid types can help give insight into the challenges these populations face.

The Risks of Different Population Pyramid Types

Each type of population pyramid structure has unique challenges and advantages often characterized by the country or region’s current stage of economic development.

Populations with expansive pyramids, such as the one representing the continent of Africa, have the advantage of a larger youth and working-aged population, however this advantage can be rendered null if job growth, education, and health care aren’t prioritized.

Countries with constrictive pyramids like Japan face the challenge of supporting their outsized aging population with a diminishing working-aged population. While immigration and increasing birth rates can help in both the short and long term, due to the working population being outnumbered, countries with constrictive pyramids must find ways to increase their productivity to avoid potential declines in economic growth.

China and India’s Demographics Compared

After the world’s population reached eight billion people last year, 2023 brought a new population milestone as India overtook China as the world’s most populous country.

When you compare the two nations’ population pyramids, you can see how India’s population has a strong base of young and working-aged people compared to China’s more constrictive population pyramid that also features a higher median age.

This demographic difference is largely shaped by China’s one-child policy which since 2021 was loosened to be a three-child policy. As a result, China’s total fertility rate is around 1.2 today, in contrast to India’s total fertility rate of 2.0.

While India is set to ride the productivity boom of its large working-age population, the country will have to ensure it can keep its population pyramid stable as the majority of the population ages and total fertility rates continue to decline.