What does cognitive bias refer to in decision-making?

Cognitive bias in decision-making refers to patterns of thinking that lead individuals to make judgments and decisions that deviate from what would be considered norm or rationality. These biases can affect how people perceive information, interpret experiences, and ultimately make choices.

Individuals may rely on heuristics, or mental shortcuts, which can simplify decision-making under uncertainty but may also lead to skewed or irrational outcomes. Examples of cognitive biases include confirmation bias, where people favor information that confirms their existing beliefs, and availability heuristic, where individuals base their decisions on what readily comes to mind, rather than on a complete set of information.

This concept is critical for understanding psychological phenomena, as cognitive biases illustrate the irrational aspects of human thought processes, contrasting with a systematic approach to rational judgment or an unbiased strategy for evaluating information.