Cognitive limitations impede individuals' ability to adapt their beliefs in light of contradictory evidence, even if the evidence is of a compelling nature. These limitations include the tendency to engage in emotionally-motivated reasoning, the desire to preserve one's self-esteem and sense of self by avoiding the admission of error, confirmation bias, the tendency to favor one's own position, the belief that one's own perspective is objective and unbiased, and the inability to recognize one's own biases. These factors contribute to a phenomenon known as "entrenchment" in which individuals become more deeply committed to their existing beliefs.

The process by which individuals encounter and incorporate new evidence is multifaceted and encompasses various levels of cognitive and behavioral functioning. Essentially, individuals possess a natural inclination towards reducing uncertainty and tend to favor information that confirms their preexisting beliefs, as opposed to information that challenges or contradicts them. Furthermore, individuals tend to exhibit a preference for being in agreement with their social group, as it provides a sense of security and validation. This phenomenon is commonly referred to as "confirmation bias" and "herding behavior" respectively.

Below we examine the most significant biases that impact on decision making under uncertainty and we outline simple strategies that can be employed to allow one to debias.

Anchoring Bias: The tendency to rely too heavily on the first piece of information encountered when making decisions or forming opinions. The phenomenon of anchoring bias refers to the tendency for individuals to rely too heavily on the initial information they receive when making subsequent judgments. This bias can occur when people are faced with copious but imperfect information and they use the initial information as a reference point, or anchor, to guide their subsequent judgments. Research has shown that this bias can have a significant impact on decision-making, as it can lead people to overestimate or underestimate the value of subsequent information. One of the key features of anchoring bias is that it is often unconscious, and individuals may not be aware that they are being influenced by the initial information. Anchoring bias can be particularly problematic in situations where the initial information is not relevant or important to the decision at hand, but it is still given undue weight due to its salience. The phenomenon of anchoring bias can be observed in various contexts, including financial markets, where people may attach significant meaning to early morning market fluctuations, which may be the result of random noise or the actions of algorithms. This can lead to the creation of dominant narratives that are not based on logical or relevant information, but rather on the initial piece of insignificant information that was used as an anchor. In summary, anchoring bias is a common cognitive bias that refers to the tendency for individuals to rely too heavily on initial information when making subsequent judgments. This bias can lead to skewed judgments and can be particularly problematic in situations where the initial information is not relevant or important to the decision at hand.

Confirmation Bias: The tendency to seek out and give more weight to information that supports one's beliefs, and ignore or dismiss information that contradicts them. Cognitive limitations impede individuals' ability to adapt their beliefs in light of contradictory evidence, even if the evidence is of a compelling nature. These limitations include the tendency to engage in emotionally-motivated reasoning, the desire to preserve one's self-esteem and sense of self by avoiding the admission of error, confirmation bias, the tendency to favor one's own position, the belief that one's own perspective is objective and unbiased, and the inability to recognize one's own biases. These factors contribute to a phenomenon known as "entrenchment" in which individuals become more deeply committed to their existing beliefs. The process by which individuals encounter and incorporate new evidence is multifaceted and encompasses various levels of cognitive and behavioral functioning. Essentially, individuals possess a natural inclination towards reducing uncertainty and tend to favor information that confirms their preexisting beliefs, as opposed to information that challenges or contradicts them. Furthermore, individuals tend to exhibit a preference for being in agreement with their social group, as it provides a sense of security and validation. This phenomenon is commonly referred to as "confirmation bias" and "herding behavior" respectively. Confirmation bias is very strongly related to self-represenataion - how it is that we see ourselves - and how it is that we cope and deal with frustration.

Hindsight Bias: The tendency to believe, after an event has occurred, that one would have accurately predicted it ahead of time.

Availability Bias: The tendency to rely too heavily on readily available information when making decisions or forming opinions.

Framing Effect: The way that information is framed can affect an individual's decision or opinion, even if the content of the information is the same.

Overconfidence Bias: The tendency to be overly confident in one's own abilities and judgments.

Sunk Cost Fallacy: The tendency to continue investing in a decision based on resources already invested, rather than its potential for future success.

Representativeness Heuristic: The tendency to judge the likelihood of an event based on how similar it is to a typical or representative case.

Base Rate Fallacy: The tendency to ignore base rate information, or prior probability, when making decisions or predictions.

Loss Aversion: The tendency to prioritize avoiding losses over acquiring equivalent gains, leading to risk-averse behavior.

To “debias” our decisions we need to:

Seek out diverse perspectives: Diverse perspectives can help to counteract the effects of biases and provide a more balanced view of a situation.

Gather and consider multiple sources of information: Relying on multiple sources of information can help to reduce the impact of biases.

Be aware of and monitor your own biases: Self-awareness and mindfulness can help to reduce the impact of biases.

Question assumptions and beliefs: Challenging assumptions and beliefs can help to reduce the impact of biases, as individuals are forced to critically evaluate their own beliefs and consider alternative perspectives.

Use evidence and data to inform decisions: Evidence-based decision-making can help to reduce the impact of biases, as decisions are based on objective data rather than personal biases and beliefs.

Seek out and incorporate disconfirming evidence: Incorporating disconfirming evidence, or information that contradicts one's beliefs, can help to reduce the impact of biases and provide a more balanced view of a situation.

Seek out feedback and challenge one's own assumptions: Seeking feedback from others and seeking out challenges to one's own assumptions can help to reduce the impact of biases, as individuals are exposed to new information and different perspectives.

Remain open-minded and flexible: Maintaining an open-minded and flexible approach can help to reduce the impact of biases, as individuals are more likely to consider new information and perspectives.