In this article, we will explore the cognitive biases in trading with four case studies. LTCM Case Study The Long-Term Capital Management (LTCM) case study involves a hedge fund founded by Nobel ...

Enke, Benjamin, Uri Gneezy, Brian Hall, David Martin, Vadim Nelidov, Theo Offerman, and Jeroen van de Ven. "Cognitive Biases: Mistakes or Missing Stakes?" Harvard Business School Working Paper, No. 21 ...

This information compression inevitably gives rise to cognitive biases, as individuals construct their own subjective reality based on their perception of incoming information. Of course ...

Because this cognitive bias favors information that confirms our preconceptions while disregarding evidence that contradicts them, it plays a significant role in how we interpret the world.

Cognitive scientists see motivated reasoning as a force that operates in many domains. Studies by political psychologists highlight denial of climate change or discrediting its science as ...

The frequency illusion, also called the Baader-Meinhof phenomenon, is a cognitive bias in which someone learns a novel word or concept—and then “suddenly” encounters it everywhere ...