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Common Cognitive Biases
Cognitive biases are predictable patterns of deviation from rational judgment. Daniel Kahneman and Amos Tversky identified several that affect everyday reasoning:
Confirmation Bias – The tendency to seek information that confirms pre-existing beliefs while ignoring contradictory evidence. Studies show individuals exposed to neutral financial data interpret it in line with their expectations 72% of the time.
Availability Heuristic – Overestimating the likelihood of events based on how easily they come to mind. For example, people may overestimate rare but vivid risks such as plane crashes, while underestimating more frequent hazards like car accidents.
Overconfidence Effect – Overestimating the accuracy of one’s own knowledge or predictions.

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Understanding the Mechanisms of Intuition
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