MOTIVATION: “Rose Colored” Reasoning

By Staff Reporters

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Motivated Reasoning is the tendency to process information in a way that aligns with your desires and preconceptions. It’s like having rose-colored glasses for your beliefs.

Motivated reasoning (motivational reasoning bias) is a cognitive and social response in which we, consciously or sub-consciously, allow emotion-loaded motivational biases to affect how new information is perceived. Individuals tend to favor evidence that coincides with their current beliefs and reject new information that contradicts them, despite contrary evidence.

According to Wikipedia, motivated reasoning can be classified into two categories: 1) Accuracy-oriented (non-directional), in which the motive is to arrive at an accurate conclusion, irrespective of the individual’s beliefs, and 2) Goal-oriented (directional), in which the motive is to arrive at a particular conclusion.

Furthermore, colleague Dan Ariely PhD suggests that when we encounter any new information, we twist and turn it to fit our existing views. This mental gymnastics helps us avoid cognitive dissonance but can also lead us astray.

So, next time you’re defending your viewpoint, ask yourself: am I seeing this clearly, or is it motivated reasoning at play?

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CONTRAST EFFECT: Cognitive Bias

FOR FINANCIAL ADVISORS

By Dr. David Edward Marcinko MBA MEd CMP

SPONSOR: http://www.CertifiedMedicalPlanner.org

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Sensation, emotion and cognition work by Contrast Effect [cognitive bias]. 

Now, such perception is not only on an absolute scale, it also functions relative to prior stimuli.  This is why room temperature water feels hot when experienced after being exposed to the cold.  It is also why the cessation of negative emotions “feels” so good. 

Cognitive bias functioning also works on this principle.  So one’s ability to analyze information and draw conclusions is very much related to the context with in which the analysis takes place, and to what information was originally available.  This is why it is so important to manage one’s own expectations as well as those of a financial advisor’s or stock broker’s clients. 

For example, a client is much more likely to be satisfied with a 10% portfolio return if they were expecting 7% than if they were hoping for 15%.

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THE DIFFERENT SCHOOLS OF PSYCHOLOGY

Five [5] Schools

By staff reporters

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