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What is behavioral economics? Why does it matter to you?

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Podcast Episodes

What is behavioral economics? Why does it matter to you?

378. The Illusion of Focus: Why We Miss What Matters When it Matters Most (Refreshed Episode)

In this episode of The Brainy Business, Melina Palmer delves into the fascinating concept of selective attention biases, shedding light on how our brains naturally filter what we focus on, influencing our decisions and perceptions. Through real-life examples and relatable anecdotes, Melina explores various biases, including the frequency illusion, mere exposure effect, and Von Restorff effect, to showcase how our perceptions are shaped by what we pay attention to. 

By emphasizing the power of shifting focus and expectations, she highlights the practical implications of understanding and challenging these biases. Melina’s insights provide valuable guidance on how to navigate cognitive biases effectively and make more informed choices in various aspects of life and business. Her engaging and relatable approach makes this episode a must-listen for anyone keen on improving decision-making skills. So, tune in and discover how being mindful of selective attention biases can lead to more informed choices and positive outcomes.

In this episode:

  • Recognize selective attention biases to make more informed decisions.
  • Explore the impact of repeated exposure to enhance your perceptions.
  • Identify cognitive biases in memory recall for improved cognitive awareness.
  • Learn to manage the influence of expectations on focus for better decision-making.
  • Overcome confirmation bias to enhance the quality of your judgments.
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IN A RUSH?

HERE'S A 2 MINUTE TIP.

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SHOW NOTES:

00:00:00 – Introduction
Melina introduces the concept of selective attention biases and its impact on decision-making. The episode will cover biases related to where we focus our attention, how it impacts decisions, and how it colors our perception when looking back.

00:04:08 – Frequency Illusion and Recency Illusion
Melina discusses the frequency illusion, selection bias, and recency illusion, explaining how our brains notice things more after they come to our attention. This leads to biases in decision-making and impacts our perceptions.

00:10:07 – Selective Perception and Attentional Bias
Melina delves into the concepts of selective perception and attentional bias, highlighting how our expectations influence the way we perceive things. She emphasizes the power of shifting focus and expectations for positive impact.

00:13:34 – Rhyme as Reason Effect, Belief Bias, and Conjunction Fallacy
Melina explores the impact of the rhyme as reason effect on decision-making and the tendency to believe rhyming statements. She also explains the belief bias and conjunction fallacy, shedding light on how our biases influence the logical strength of arguments.

00:16:06 – Base Rate Fallacy and Base Rate Neglect
Melina discusses the base rate fallacy and neglect, emphasizing how we tend to focus on specific information while ignoring general or base rate information. These biases can lead to faulty decision-making and misinterpretation of probabilities.

00:16:58 – Understanding Biased Decision Making
Blue dominates the cab market, but witnesses tend to misidentify cab colors. This bias affects decision-making and highlights the need to consider base rates in our judgments.

00:19:17 – Impact of Biases on Research and Business
Biases impact scientists’ studies and lead to expectancy effects, illusory correlations, and subjective validation. These biases can hinder businesses’ ability to accurately assess customer groups and marketing strategies.

00:23:13 – Overcoming Confirmation Bias
Confirmation bias affects our ability to search for and interpret information. We tend to focus on information that confirms our beliefs, leading to narrow perspectives. Overcoming bias requires open-mindedness and seeking input from diverse perspectives.

00:27:24 – Hindsight Bias and Outcome Bias
Hindsight bias leads us to view past events as more predictable than they were, impacting future decisions. Outcome bias causes us to judge decisions based on their results rather than the information available at the time. Both biases can distort our memory of past events.

00:29:41 – Conclusion
Melina’s top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media — you’ll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.

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