Are you ready to put your smarts to the test?
“Considering a hard-hitting lesson that makes you question whenever you want to decide”. Be it the supermarket checkout line or how much stock market advice you receive. Isn’t it?
You might be experiencing information bias that can completely undermine your flawed perceptions of reality.
In this post, learn about information bias, how it affects your judgment, and some tips on how to guard against it.
Understanding Information Bias
Information bias is a cognitive bias wherein people tend to look for more information or details, even if it’s not necessary for decision-making. As a result, people can often make better predictions or choices with less information, and more information is only sometimes a good thing.
The result can often be an ill-informed decision or one outside our best interest. We may also become overly reliant on sources of information that could be more reliable and unbiased, leading to further problems.
Why did you not make the big bucks on your latest stock investments?
The reason could be the overload of useless information you received from various “Finance Gurus” on multiple media outlets. But dont worry; you are not alone. Many investors need help with using market information to make future investment decisions. So next time, cut out the extras and look for anything in simple jargon that suits you to make smarter investments.
The Exploited and The Exploiters
People who suffer from information bias commonly rely on the information sources they can access without considering other viewpoints or aspects. Due to this, people might consider information that is not in their interest and depend on either unreliable or prejudiced information.
Those who exploit this bias are typically manipulators or individuals vested in controlling the outcomes. By utilizing inaccurate or inadequate information, they can easily influence others and attain their objectives with minimal effort.
Day To Day Information Bias
- A car dealership advertises a great deal on cars without mentioning the amount of money needed upfront for a deposit or hidden fees.
- An employer posts job listings with many adjectives that make the position sound better than it really is by not disclosing details like long hours and low pay.
- A student referring to 20-odd reference books to read for a class assignment and ends up all confused.
- A couple trying to compile a list of ideal vacation spots and accommodations after scouring the internet but unfortunately come up empty-handed in their search for a destination.
Recognizing When You’re Slipping Into The Information Bias Trap
One way to identify if you are falling into the trap of “Information Bias” (in cognitive biases) is to take a step back and look at the information being provided objectively.
Ask yourself: Is this information complete and trustworthy? Is there more data available that could give me a more comprehensive understanding of the situation? If there are any inconsistencies or conflicting opinions, consider those when forming your decisions.
One must remain cautious of potential partialities from various sources like media outlets with motives, untrustworthy online resources, or exaggeratedly positive reports from industry professionals.
By recognizing these sources, you can be better equipped to make informed decisions without letting bias cloud your judgment.
Overcoming the Information Bias Trap
- Remember that more information does not always mean better, and be aware of cognitive biases like information bias.
- Question the source of information as to if it is reliable, trustworthy, or biased.f
- Aim to be open-minded and gather data from multiple sources to develop your own informed opinion on a subject.
- Look for objective evidence to back up claims before accepting them as fact or truth.
- Take time to think through and analyze situations critically before making decisions based on limited data or unreliable sources. Consider the consequences before acting on any one piece of information or advice.
- Remain vigilant when it comes to recognizing false information and filter out any bias that is present in the data you receive.
Final Thoughts
Have you ever been overwhelmed with information while trying to make a purchase? I Once experienced it when I went shopping with a friend to buy a food processor. We had already narrowed it down to two options(models).
However, we came across this enthusiastic salesman who started showing us every processor in the store and explaining their features and drawbacks. This is when our heads started spinning, and we spent over two hours listening to the salesman without making up our minds!
Eventually, we were in such a dilemma that we decided to take leave, do more homework on the best available food processor, and return later. But on our way back, my friend placed an order for the previously shortlisted food processor on Amazon! as she felt it suited her requirements.
This event substantiates several research studies suggesting that the more information you have at your disposal, the more it can weigh heavy on your purse and be a waste of time. So, there you have it! It helps at times when we can trust our instincts and make the best choice as per our needs.
Ultimately, information bias is a problem that affects us all, whether we’re aware of it or not. But by being cautious in our approach, we can become better navigators of the news we receive. To learn more about such informative articles, do subscribe to our newsletter!
Reference
The above article is based on the book Thinking Clearly; this article is here to help us learn and understand how our minds can be tricked by something called cognitive biases.