Action Bias
Hi,
This week’s email is about a common cognitive bias that can drive us to take unnecessary actions.
The information here comes from my new article on the topic.
Here are the key practical points you should know:
The action bias is a cognitive bias that causes people to favor action over inaction, without properly considering the outcomes that this will bring.
For example, the action bias can drive someone to make unnecessary changes to their investment portfolio, even if it would be better for them to do nothing.
The action bias can occur due to a combination of unconscious potential causes, including that action may generally lead to better outcomes than inaction, that people value action more, that taking action by default may be more efficient, and that taking action may increase opportunities to learn and increase people’s sense of control.
You can reduce the action bias using a combination of techniques, including outlining the negative consequences of action and positive consequences of inaction, comparing the pros/cons of action to each other and to the pros/cons of inaction, and framing inaction as an active choice.
Remember that action is nevertheless often preferable to inaction, so accounting for this bias isn’t about avoiding action, but rather about assessing the situation properly when deciding what to do.
As with other biases, it can be beneficial to account for the action bias when it comes to understanding and predicting people’s behavior—including your own—even if you don't intend to reduce this bias directly.
As always, I'm happy to hear your thoughts.
Have a great week,
Itamar