Dan Lovallo, a professor and decision-making researcher says, “Confirmation bias is probably the single biggest problem in business, because even the most sophisticated people get it wrong. People go out and they’re collecting the data, and they don’t realize they’re cooking the books.”
What’s this “confirmation bias” that Lovello is talking about?
No surprise, people tend to seek out information that supports their existing beliefs.
You know, liberals watch MSNBC, read the NY Times listen to BBC podcasts; conservatives watch FOX, read the WSJ and listen to Rush.
Behavioral psychologists call the he dynamic “confirmation bias”.
In socio-politics, the confirmation bias tends to harden polarized positions. People just gather debate fodder rather than probing both sides of issues.
In the realm of decision making, confirmation bias has a dysfunctional effect: it leads to bad decisions.