Cognitive Biases and Decision-Making in Everyday Life

Abstract

Human decision-making is often influenced by cognitive biases that operate automatically and unconsciously. This paper explores the role of cognitive biases in everyday decision-making processes, drawing from cognitive and social psychology perspectives. Biases such as confirmation bias, availability heuristic, and anchoring effect shape how individuals interpret information, assess risk, and make judgments. While these mental shortcuts can enhance efficiency in complex environments, they can also lead to systematic errors and flawed reasoning. The paper reviews empirical research demonstrating how cognitive biases influence choices in domains such as finance, health behavior, and interpersonal relationships. It further examines how emotional states, prior experiences, and cultural contexts interact with cognitive biases to shape individual decision outcomes. Understanding these mechanisms is essential for improving critical thinking and promoting more rational decision-making. The study also discusses strategies to reduce bias, including metacognitive awareness, structured decision frameworks, and education-based interventions. By integrating theoretical and applied perspectives, this paper highlights the importance of recognizing cognitive biases in both personal and professional contexts, contributing to improved judgment, problem-solving, and behavioral outcomes.