What Is Confirmation Bias In Behavioral Economics?

Confirmation bias is a phenomenon in which people have a tendency to seek out and interpret information in a way that confirms their existing beliefs and biases. This bias can lead people to ignore or dismiss evidence that contradicts their beliefs, and to give greater weight to evidence that supports their beliefs. The confirmation bias is a common source of errors in judgment and decision-making, as it can lead people to make decisions that are not based on a complete or accurate understanding of the facts. To avoid the confirmation bias, it is important to be open-minded and to consider evidence from multiple sources, even if it contradicts our existing beliefs. It is also important to seek out information from a diverse range of sources to ensure that our views are not overly influenced by any one perspective.

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