Threshold bias

Notes

we give greater importance when something passes a threshold even when reality is continuous and not discrete non linear Binary Thinking. For example, turning 30 is much more meaningful than being 29 and 11 months. We would surely accept something that is free and avoid it if it costs 5 cents even though 5 cents is negligible. Similarly, converting something from 99% probability to 100% is much more valuable than from 95% to 96%.

The threshold is a form of Anchoring, once it is out there we look at everything differently even though deep down we know it is completely arbitrary.

Visual

Overview

🔼Topic:: Cognitive Bias (MOC) 🔼Topic:: Decision Making (MOC) ↩️Origin:: 🔗Link:: Link