Too Many Biases
The explanation of decision-making caused by cognitive bias is overdetermined. Dozens of factors are invoked as candidates for this role. However, this diagram needs to set the outer limit for the number of factors if for no other reason than we can't fit any more on the chart. Also, it is impossible to determine the correlation of these factors to each other (i.e. we can't perform a factor analysis to group this bias into a smaller number) nor can we assign the relative importance of these variables in determining the factors that cause these decisions and actions. Of course, this is the major reason that behavioral economics is stuck using narratives rather than statistics as the main research tool. ##cognition #behavioralfinance #research #behavioraleconomics #ezrazask #decisionmaking #narrativeeconomics #factoranalyis
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