A Cognitive Bias - 10 Mintues to Save $10

Abstract

A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. Cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, or what is broadly called irrationality. (Wikipedia, 2018) This research was designed a experiment to test the irrational illusion. It was a type of cognitive bias and it lead a systematic error of inductive reasoning. People displayed this bias when they believed they were smart, and they made the right decision by doing mathematic calculation to save a big portion of the money vs their spending amount. They thought they could save 33.33% spending if they went for $30 gift, but they only saved 4.34% spending if they went for $230 gift. Therefore, they believed that they had made the right decision to go for $30 gift because the trip made them feel that they saved a lot of money.