4 Reasons we make Irrational Decisions

Have you ever wondered why sometimes we make decisions that seem irrational, or why we tend to stick with our initial beliefs even when presented with new evidence? It’s due to something called a cognitive bias.

Cognitive biases are actually a part of our brain’s survival toolkit. They help us make quick decisions without having to analyse every single detail, which is crucial in a fast-paced or complex world.

Whilst they can be really helpful for things like recognizing a familiar face in a crowd or making a snap judgment in an emergency, unfortunately, these shortcuts don’t always lead us to the best or most accurate conclusions. They can distort reality, leading us to make decisions based on incomplete or inaccurate information.

In this blog, I’m going to explore 4 of the most common cognitive biases and how they might be affecting your day-to-day decision making.

1.      Confirmation Bias.

This is when we tend to seek out or favour information that confirms our existing beliefs, while ignoring information that challenges them. The danger is that we create ‘echo-chambers’ and only hear what corresponds with what we believe. In the immortal line of The Boxer by Paul Simon ‘A man hears what he wants to hear and disregards the rest’.

2.       Anchoring Bias.

This is where we rely too heavily on the first piece of information we receive when making decisions – often called the ‘anchor’. Imagine you're shopping for a car. The first one you see costs £20,000. Every car you see after that which is below that cost will seem like a bargain – even if it is still over your budget. That’s ‘anchoring’ at work!

3.       The ‘Availability Heuristic’.

This is our tendency to overestimate the importance of information that’s easy to recall, usually because it’s recent or emotionally charged. For example, after hearing about a plane crash, some people may feel that flying is suddenly more dangerous, even though statistically, it's still one of the safest ways to travel.

4.       The Bandwagon Effect 

This is where we do something primarily because others are doing it too. It’s that FOMO (Fear Of Missing Out), the 'everyone’s doing it' mentality. Whether it's buying the latest gadget or joining a trend on social media, the bandwagon effect often influences our choices without us realizing it.

So, how can we work around our biases?

The first step is awareness. When you understand that these mental shortcuts exist, you can start catching yourself in the act. For example, if you find yourself looking for information to confirm your opinion, take a step back and ask, ‘What would someone who disagrees with me say?’.

Another tip is to slow down when making important decisions. The more time you take to consider different angles, the less likely you are to fall into these cognitive traps.

Understanding cognitive bias is also vital when conducting mental capacity assessments because understanding both yours and the other person’s cognitive biases can give greater insight into why they are making the decisions they are making.