question archive 1) Halo Effect - That's why "First Impression" is so important
1) Halo Effect - That's why "First Impression" is so important
Subject:ManagementPrice: Bought3
1) Halo Effect
- That's why "First Impression" is so important.
- Sequence matters, because the halo effect increases the weight of first impression, sometimes to a point that subsequent information is mostly wasted.
2) Bias to believe and confirm
- For us, humans, default state is to believe a statement (system 1)
- We need to engage system 2 to disprove a statement
Moral: when system 2 is engaged or busy we believe almost anything. We are more vulnerable when we are tired and depleted.
3) Jumping to conclusions
- Initial reaction is to suppress ambiguity (system 1)
- Recent events (and current context) have the largest impact in reaching a conclusion
4) "What you see is all there is (WYSIATI)"
Think about "What you see is all there is (WYSIATI)" as it relates to your day to day life. Especially how you can improve investment decisions? - e.x. CAPEX, taking a project, starting a new position in a stock, asset allocation etc.
