Every day, your brain processes an enormous amount of information. To keep up, it relies on mental shortcuts called cognitive biases to make decisions more efficiently. While these shortcuts can be helpful, they don’t always lead to the best outcomes. 

One category, decision-making biases, affects how we choose between options, especially in uncertain or high-pressure situations. Here’s a closer look at what those biases are and four common types that can shape your daily choices. 

What Is a Decision-Making Bias? 

A decision-making bias is a type of cognitive bias that influences how we choose between options. These mental shortcuts help us make quicker decisions, but they can also lead us away from the most rational choice. 

Sometimes, that’s harmless. You might default to your usual dinner order because it feels easy and familiar.  

Other times, it can lead to less practical choices, like agreeing to run a 5K next week when your running shoes haven’t seen the light of day since “Tiger King” dropped. 

4 Types of Decision-Making Biases 

Here are four common decision-making biases that shape your choices throughout the day. 

UTPB infographic showing four decision-making biases: overconfidence, sunk cost fallacy, status quo, and anchoring bias.

#1 Overconfidence Bias 

Overconfidence bias happens when you overestimate your skills or judgment in a particular area. 

Maybe you’ve watched enough “Top Chef” to feel ready for a gourmet dinner challenge. Suddenly, coq au vin seems totally manageable, even though you still check the pasta box directions every time. That inflated confidence can push you toward decisions that don’t quite match your actual ability.  

#2 Sunk Cost Fallacy 

The sunk cost fallacy happens when you keep investing in something because of the time, money, or effort you’ve already spent. 

Say you buy a year-long gym membership in January. By spring, you dread going, but you keep showing up anyway because you already paid for it. Even when walking away would make more sense, your past investment keeps influencing the decision. 

#3 Status Quo Bias 

Status quo bias pulls you toward the familiar, even when a better option is available. 

For example, your doctor may recommend a new medication with better benefits, but sticking with the one you already know feels safer. In that moment, familiarity can outweigh logic.  

#4 Anchoring Bias 

Anchoring bias happens when the first piece of information you see shapes the way you evaluate everything that comes after it. 

Think about scanning a menu and spotting the most expensive entrée first. Once that number is in your head, the other dishes may start to seem more reasonable, even if they’re still pricey. That first number becomes the anchor, whether or not it should

Make the Decision That’s Right for You at UTPB 

With The University of Texas Permian Basin’s online Bachelor of Arts in Psychology, your higher education decision is simple. Our program offers online students plenty of benefits, including networking, flexibility, and affordability—all on a timeline that works for your schedule. 

Take the first step toward deciding your future and apply today! 

Don’t miss part two of our series on cognitive bias, where we’ll discuss social biases and how they influence the way we behave and perceive ourselves and others. 

Sources: 
https://www.forbes.com/sites/daviddisalvo/2013/06/22/your-brain-sees-even-when-you-dont/?sh=26e4097d116a
https://www.masterclass.com/articles/overconfidence-bias

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