Confirmation Bias Strikes Again…

/Confirmation Bias Strikes Again…

Confirmation Bias Strikes Again…

By | 2017-08-18T17:07:55+00:00 January 20th, 2014|Behavioral Finance|1 Comment

http://www.cnn.com/2014/01/17/travel/southwest-wrong-airport

The pilots of Southwest flight 4013 say that Branson Airport was correctly programmed into their on-board computer Sunday, but that they “mistakenly identified” another airport as Branson when they saw its bright lights, according to the National Transportation Safety Board.

The explanation, aviators say, is an example of “confirmation bias,” the tendency of people to confirm their beliefs, and dismiss conflicting information.

Whoops…

a classic confirmation bias study: http://psycnet.apa.org/index.cfm?fa=buy.optionToBuy&id=1981-05421-001


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About the Author:

Wes Gray
After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes, ETF.com, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.