DOI: 10.17265/2159-5542/2016.07.001
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Atsuo Murata

Abstract: It is possible that cognitive biases potentially and unexpectedly distort our decision and become a root cause of disasters such as the Three Mile Island disaster and the subprime disaster that vanished pension funds. Using six types of cognitive biases (ignorance of base rate, regression to the mean, conjunction fallacy, framing effect, illusion of covariation, and overconfidence), this study explored whether there are effective countermeasures to remove cognitive biases and prevent our decision from distorti…

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