false-equivalence-fallacy

False Equivalence

The False Equivalence Fallacy is an informal fallacy that occurs when two or more situations, events, or ideas are compared or equated as if they are fundamentally similar or equivalent when, in reality, they are not. It implies that because two things share some superficial similarities, they must be equal in all aspects or equally valid. This fallacy overlooks critical differences between the compared elements.

Characteristics of the False Equivalence Fallacy

Superficial Similarities

At its core, the False Equivalence fallacy hinges on the presentation of superficial similarities between two arguments or positions, while ignoring or downplaying substantial differences. The arguer creates a false sense of equivalence by highlighting surface-level resemblances, thereby misleading the audience into believing that the arguments are equally valid.

Ignored Context

A key characteristic of the False Equivalence fallacy is the omission or distortion of relevant contextual information that would reveal the dissimilarities between the two arguments. By cherry-picking data or selectively framing the comparison, the arguer obscures the nuanced complexities of the issues at hand, leading to a skewed portrayal of the situation.

Moral Ambiguity

False Equivalence often involves the conflation of moral or ethical judgments, suggesting that two actions or behaviors are morally equivalent when they are not. The arguer exploits moral ambiguity to blur the lines between right and wrong, thereby undermining the credibility of valid moral distinctions and ethical considerations.

Implications of the False Equivalence Fallacy

Undermining Rational Discourse

The False Equivalence fallacy undermines rational discourse by distorting the comparison between opposing arguments and misleading the audience about their relative merits. By equating unequal positions, the arguer obfuscates the truth and stifles meaningful debate, hindering the pursuit of informed decision-making and constructive dialogue.

Eroding Trust in Information Sources

When false equivalences are perpetuated through media outlets or public discourse, they erode trust in information sources and contribute to the spread of misinformation and disinformation. By presenting biased or misleading comparisons as objective truth, the media risks undermining its credibility and integrity, thereby compromising its ability to fulfill its democratic function as an informer of the public.

Fostering Polarization and Division

False Equivalence exacerbates polarization and division within society by reinforcing binary narratives and oversimplified dichotomies. By framing complex issues as simple black-and-white choices, the arguer perpetuates tribalistic thinking and ideological polarization, making it increasingly difficult to find common ground and engage in constructive dialogue across ideological divides.

Examples of the False Equivalence Fallacy

Climate Change Debate

In the debate over climate change, proponents of climate denial often invoke False Equivalence by equating the scientific consensus on human-caused climate change with fringe theories and pseudoscientific claims. By presenting these opposing viewpoints as equally valid, they create the false impression of a genuine scientific controversy, despite overwhelming evidence to the contrary.

Political Reporting

In political reporting, False Equivalence can manifest in the form of “both sides” journalism, where journalists equate the statements or actions of political candidates from different parties, regardless of their factual accuracy or moral implications. By treating all perspectives as equally valid, journalists risk normalizing falsehoods and legitimizing extremist views, thereby undermining the public’s trust in the media.

Historical Analogies

False Equivalence is often employed in historical analogies to draw parallels between disparate events or phenomena. For example, comparing contemporary political figures or movements to historical tyrants or authoritarian regimes can create a false equivalence that trivializes the unique complexities of historical events and minimizes the atrocities committed by oppressive regimes.

Strategies to Identify and Counteract the False Equivalence Fallacy

Evaluate Relevant Differences

One effective strategy for identifying the False Equivalence fallacy is to critically evaluate the relevant differences between the two arguments or positions being compared. By examining the nuances and complexities of the issues at hand, one can uncover the substantive disparities that invalidate the comparison and expose the fallacious reasoning employed by the arguer.

Contextualize the Comparison

To counteract False Equivalence, it is essential to contextualize the comparison within its broader context and consider the relevant background information that informs the comparison. By providing additional context and framing the comparison within its appropriate historical, cultural, or social context, one can elucidate the nuances of the issues at hand and debunk misleading equivalences.

Challenge Moral Ambiguity

When confronted with false equivalences based on moral or ethical judgments, it is crucial to challenge the moral ambiguity inherent in the comparison. By highlighting the relevant moral principles or ethical considerations that distinguish between the two arguments, one can demonstrate the fallacy of equating unequal moral positions and reaffirm the importance of ethical clarity in ethical discourse.

Conclusion

The False Equivalence fallacy represents a pervasive form of flawed reasoning that distorts comparisons between opposing arguments or positions by presenting them as if they are logically equivalent. By highlighting superficial similarities while ignoring substantive differences, the arguer misleads the audience and undermines rational discourse, eroding trust in information sources and fostering polarization and division within society. However, by critically evaluating relevant differences, contextualizing the comparison, and challenging moral ambiguity, individuals can effectively identify and counteract the False Equivalence fallacy, fostering more nuanced and informed discourse in the public sphere.

AspectExplanation
Key Characteristics– The False Equivalence Fallacy typically exhibits the following traits: – Superficial Similarities: It highlights surface-level similarities between two or more things while ignoring substantial differences. – Inaccurate Comparison: It incorrectly implies that because two things share a common trait or aspect, they are equal in overall importance or impact. – Misleading: This fallacy can mislead the audience by presenting unrelated or incomparable situations as if they have equal significance. – Overlooks Nuance: False equivalence often fails to consider the nuances, complexities, or context that differentiate the compared elements. – Logical Flaw: The fallacy relies on faulty logic and can lead to erroneous conclusions.
Examples– Examples of the False Equivalence Fallacy include: – Comparing a minor traffic violation, like running a red light, to a serious crime like robbery and claiming they are both forms of lawbreaking. While both involve breaking the law, they are vastly different in terms of severity and consequences. – Equating a peaceful protest advocating for civil rights to a violent riot and suggesting that both are forms of social unrest. This ignores the important distinction between nonviolent activism and destructive behavior. – Claiming that because two politicians from different parties have made false statements, both parties are equally guilty of dishonesty. This disregards the context and scale of deception.
Purpose and Effects– The primary purpose of the False Equivalence Fallacy is to create a sense of false balance or equivalence between two or more things to manipulate perception or downplay significant differences. The effects can include: – Misleading Comparisons: It can lead to misleading comparisons that distort the true nature of the issues or situations being compared. – Minimizing Important Distinctions: By equating dissimilar elements, this fallacy can minimize the importance of critical distinctions or nuances. – Inaccurate Judgments: It can lead to inaccurate judgments or decisions based on an oversimplified view of complex issues. – Impeded Problem-Solving: False equivalence can hinder effective problem-solving and decision-making by obscuring the true nature of problems. – Polarization: In some cases, it can contribute to polarization by suggesting that two opposing sides are equally at fault when they may not be.
Counteraction– To counteract the False Equivalence Fallacy: – Identify the Equivalence: Recognize when the argument compares or equates dissimilar things as if they are equal. – Highlight Differences: Point out the critical differences or nuances that make the comparison inaccurate. – Request Clarification: Ask the person making the argument to provide evidence or reasoning that justifies the claimed equivalence. – Consider Context: Examine the context and scale of the compared elements to determine their true significance. – Focus on Relevance: Encourage discussions to focus on relevant factors rather than attempting to equate unrelated situations.
Real-World Significance– False equivalence is a common fallacy in various domains, including politics, media, and public discourse. It can distort perceptions, hinder informed decision-making, and contribute to misinformed judgments. Being able to recognize and address this fallacy is crucial for critical thinking and for promoting accurate, nuanced, and balanced assessments of complex issues in society.

ContextDescriptionImplicationsHow to Recognize and Address ItExamples
Political DiscourseDuring a political debate, someone equates a minor policy disagreement on tax rates with a significant human rights violation, suggesting they are equally important or morally equivalent.– Misleads voters and trivializes serious issues. – Hinders informed political discussions.Question whether the subjects being compared are truly equivalent in terms of significance, impact, or moral weight.A politician suggests that a tax policy dispute is as morally significant as a human rights violation, creating a false equivalence.
Climate Change DebateIn discussions about climate change, someone compares a minor error in a climate model’s prediction to decades of overwhelming scientific evidence, implying that both are equally unreliable.– Distorts the perception of scientific consensus and credibility. – Discourages action on pressing environmental issues.Examine whether the subjects being compared are of the same magnitude and consider the broader body of evidence.An individual suggests that a small error in a climate model’s prediction is equivalent to questioning decades of scientific research on climate change.
Historical AnalogiesIn an analysis of current events, an author draws an analogy between a political leader and a notorious dictator from history, suggesting they are equivalent in their actions and intentions.– Oversimplifies complex historical and contemporary situations. – Can lead to unfair characterizations and fearmongering.Assess whether the actions and intentions of the individuals being compared truly align and consider the historical context.An author compares a contemporary political leader’s actions to those of a historical dictator, creating a false equivalence.
Health ChoicesIn a discussion about health choices, someone equates consuming a small amount of sugar in coffee with consuming a daily diet of sugary snacks, implying that both have equivalent health impacts.– Misinforms about the relative health consequences of different choices. – May discourage healthy eating habits by exaggerating the impact of minor dietary choices.Examine whether the choices being compared have similar health consequences and consider the scale and frequency of each choice.Someone suggests that adding a teaspoon of sugar to coffee is equivalent to consuming sugary snacks daily in terms of health impact.
News Media BiasWhen discussing media bias, an individual equates a minor factual error in a news article with systematic, intentional, and widespread media bias, suggesting that both undermine trust in journalism equally.– Misrepresents the nature and extent of media bias. – Can lead to unwarranted distrust in reputable news sources.Evaluate whether the subjects being compared involve the same degree and intent of bias and consider broader patterns of media coverage.An individual argues that a minor factual error in a news article is equivalent to systematic media bias, creating a false equivalence.
Personal ResponsibilityIn a debate about personal responsibility, someone compares a single instance of forgetting to recycle with a pattern of consistently littering, implying that both demonstrate equivalent environmental disregard.– Oversimplifies personal behaviors and consequences. – May discourage environmentally responsible actions by exaggerating minor lapses.Consider whether the actions being compared reflect similar levels of environmental impact and responsibility.A person suggests that forgetting to recycle once is as environmentally harmful as consistently littering, creating a false equivalence.
Business EthicsIn discussions about corporate ethics, an individual equates a company’s minor compliance oversight with a history of deliberate unethical practices, implying that both represent equivalent moral failings.– Misrepresents the ethical conduct and intentions of companies. – Can lead to unwarranted suspicion and distrust of well-intentioned businesses.Examine whether the actions being compared reflect similar levels of ethical wrongdoing and consider the company’s broader conduct.Someone suggests that a company’s minor compliance oversight is as morally troubling as a history of deliberate unethical practices, creating a false equivalence.
Criminal Justice ReformDuring a debate on criminal justice reform, someone equates a minor sentencing guideline discrepancy with a pattern of systemic racial discrimination in sentencing, suggesting they are equally responsible for inequities.– Oversimplifies complex issues of racial disparities in the criminal justice system. – May undermine efforts to address systemic injustices by focusing on minor issues.Question whether the subjects being compared have a similar scope and impact on systemic inequalities and consider the broader context of racial disparities.An individual suggests that a minor sentencing guideline discrepancy is as responsible for racial disparities as systemic discrimination in sentencing, creating a false equivalence.
Technology PrivacyIn discussions about technology privacy, someone compares a website’s use of cookies to track user preferences with a data breach that exposes personal information, implying that both are equally invasive of privacy.– Misrepresents the scale and severity of privacy violations. – Can lead to complacency regarding significant breaches of personal data.Evaluate whether the privacy violations being compared have similar levels of intrusiveness and consider the potential consequences of each.A person suggests that a website’s use of cookies to track user preferences is as invasive of privacy as a data breach exposing personal information, creating a false equivalence.
Political ScandalsIn discussions about political scandals, an individual equates a politician’s minor campaign finance violation with a history of corruption and criminal behavior, suggesting both demonstrate equivalent moral failings.– Misrepresents the nature and significance of political misconduct. – May hinder accountability for more serious ethical violations.Examine whether the actions being compared reflect similar levels of ethical misconduct and consider the overall pattern of behavior.An individual argues that a politician’s minor campaign finance violation is as morally egregious as a history of corruption and criminal behavior, creating a false equivalence.
Related Frameworks, Models, ConceptsDescriptionWhen to Apply
False Equivalence– A logical fallacy that occurs when two opposing arguments appear to be logically equivalent when in fact they are not. It involves comparing two things that share some characteristics but are otherwise vastly different, leading to a misleading conclusion that they are equal.– Important to recognize and avoid in debates and discussions to ensure that comparisons are valid and do not mislead or distort the truth.
Straw Man Argument– A fallacy that involves misrepresenting an opponent’s argument to make it easier to attack by exaggerating, distorting, or just completely fabricating the argument.– Useful to detect and correct in discussions to ensure that debates are fair and accurately represent the viewpoints being discussed.
Ad Hominem– A fallacy that involves attacking the character or traits of the person making an argument rather than addressing the substance of the argument itself. This tactic undermines the opponent’s position by attacking its source rather than its substance.– Critical to avoid in rational debate to maintain focus on the arguments rather than the personal characteristics of the participants.
Circular Reasoning– An argument that commits the logical fallacy of assuming what it is attempting to prove. The argument circles back to its starting point without arriving at a new conclusion.– Identify and critique in discussions where the reasoning provided is not persuasive because it merely restates the initial assertion.
Red Herring– A fallacy that occurs when an irrelevant topic is introduced to divert the attention of listeners or readers from the original issue. It’s a deliberate diversion of attention with the intention of abandoning the original argument.– Be aware of and steer clear of in discussions and arguments to maintain focus on the original topic and avoid distraction by irrelevant details.
Slippery Slope– A fallacy that assumes that a relatively small first step will lead to a chain of related events resulting in a significant (usually negative) outcome.– Analyze and challenge in scenarios where a progression of events is presumed to lead to an extreme outcome without sufficient evidence.
Begging the Question– A logical fallacy in which an argument’s premises assume the truth of the conclusion instead of supporting it. It essentially argues in a circle.– Important to identify and challenge in discussions where conclusions are assumed within the arguments without proper justification.
Confirmation Bias– The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.– Important to recognize and mitigate in all forms of analysis and decision-making to ensure a balanced view and avoid skewed judgments.
Hasty Generalization– A fallacy of faulty generalization by reaching an inductive generalization based on insufficient evidence—essentially making a rushed conclusion without considering all of the variables.– Avoid in analysis and decision-making where broad conclusions are drawn from too small a set of data points, potentially leading to erroneous outcomes.
Appeal to Authority– A fallacy in arguing that a claim must be true just because it is made by someone who is perceived to be an authority on the subject. While not always fallacious, it can be misleading if the authority is not genuinely qualified to speak on the subject.– Evaluate and use cautiously in arguments where the citation of an authority is not a substitute for an actual argument.

Connected Thinking Frameworks

Convergent vs. Divergent Thinking

convergent-vs-divergent-thinking
Convergent thinking occurs when the solution to a problem can be found by applying established rules and logical reasoning. Whereas divergent thinking is an unstructured problem-solving method where participants are encouraged to develop many innovative ideas or solutions to a given problem. Where convergent thinking might work for larger, mature organizations where divergent thinking is more suited for startups and innovative companies.

Critical Thinking

critical-thinking
Critical thinking involves analyzing observations, facts, evidence, and arguments to form a judgment about what someone reads, hears, says, or writes.

Biases

biases
The concept of cognitive biases was introduced and popularized by the work of Amos Tversky and Daniel Kahneman in 1972. Biases are seen as systematic errors and flaws that make humans deviate from the standards of rationality, thus making us inept at making good decisions under uncertainty.

Second-Order Thinking

second-order-thinking
Second-order thinking is a means of assessing the implications of our decisions by considering future consequences. Second-order thinking is a mental model that considers all future possibilities. It encourages individuals to think outside of the box so that they can prepare for every and eventuality. It also discourages the tendency for individuals to default to the most obvious choice.

Lateral Thinking

lateral-thinking
Lateral thinking is a business strategy that involves approaching a problem from a different direction. The strategy attempts to remove traditionally formulaic and routine approaches to problem-solving by advocating creative thinking, therefore finding unconventional ways to solve a known problem. This sort of non-linear approach to problem-solving, can at times, create a big impact.

Bounded Rationality

bounded-rationality
Bounded rationality is a concept attributed to Herbert Simon, an economist and political scientist interested in decision-making and how we make decisions in the real world. In fact, he believed that rather than optimizing (which was the mainstream view in the past decades) humans follow what he called satisficing.

Dunning-Kruger Effect

dunning-kruger-effect
The Dunning-Kruger effect describes a cognitive bias where people with low ability in a task overestimate their ability to perform that task well. Consumers or businesses that do not possess the requisite knowledge make bad decisions. What’s more, knowledge gaps prevent the person or business from seeing their mistakes.

Occam’s Razor

occams-razor
Occam’s Razor states that one should not increase (beyond reason) the number of entities required to explain anything. All things being equal, the simplest solution is often the best one. The principle is attributed to 14th-century English theologian William of Ockham.

Lindy Effect

lindy-effect
The Lindy Effect is a theory about the ageing of non-perishable things, like technology or ideas. Popularized by author Nicholas Nassim Taleb, the Lindy Effect states that non-perishable things like technology age – linearly – in reverse. Therefore, the older an idea or a technology, the same will be its life expectancy.

Antifragility

antifragility
Antifragility was first coined as a term by author, and options trader Nassim Nicholas Taleb. Antifragility is a characteristic of systems that thrive as a result of stressors, volatility, and randomness. Therefore, Antifragile is the opposite of fragile. Where a fragile thing breaks up to volatility; a robust thing resists volatility. An antifragile thing gets stronger from volatility (provided the level of stressors and randomness doesn’t pass a certain threshold).

Ergodicity

ergodicity
Ergodicity is one of the most important concepts in statistics. Ergodicity is a mathematical concept suggesting that a point of a moving system will eventually visit all parts of the space the system moves in. On the opposite side, non-ergodic means that a system doesn’t visit all the possible parts, as there are absorbing barriers

Systems Thinking

systems-thinking
Systems thinking is a holistic means of investigating the factors and interactions that could contribute to a potential outcome. It is about thinking non-linearly, and understanding the second-order consequences of actions and input into the system.

Vertical Thinking

vertical-thinking
Vertical thinking, on the other hand, is a problem-solving approach that favors a selective, analytical, structured, and sequential mindset. The focus of vertical thinking is to arrive at a reasoned, defined solution.

Metaphorical Thinking

metaphorical-thinking
Metaphorical thinking describes a mental process in which comparisons are made between qualities of objects usually considered to be separate classifications.  Metaphorical thinking is a mental process connecting two different universes of meaning and is the result of the mind looking for similarities.

Maslow’s Hammer

einstellung-effect
Maslow’s Hammer, otherwise known as the law of the instrument or the Einstellung effect, is a cognitive bias causing an over-reliance on a familiar tool. This can be expressed as the tendency to overuse a known tool (perhaps a hammer) to solve issues that might require a different tool. This problem is persistent in the business world where perhaps known tools or frameworks might be used in the wrong context (like business plans used as planning tools instead of only investors’ pitches).

Peter Principle

peter-principle
The Peter Principle was first described by Canadian sociologist Lawrence J. Peter in his 1969 book The Peter Principle. The Peter Principle states that people are continually promoted within an organization until they reach their level of incompetence.

Straw Man Fallacy

straw-man-fallacy
The straw man fallacy describes an argument that misrepresents an opponent’s stance to make rebuttal more convenient. The straw man fallacy is a type of informal logical fallacy, defined as a flaw in the structure of an argument that renders it invalid.

Google Effect

google-effect
The Google effect is a tendency for individuals to forget information that is readily available through search engines. During the Google effect – sometimes called digital amnesia – individuals have an excessive reliance on digital information as a form of memory recall.

Streisand Effect

streisand-effect
The Streisand Effect is a paradoxical phenomenon where the act of suppressing information to reduce visibility causes it to become more visible. In 2003, Streisand attempted to suppress aerial photographs of her Californian home by suing photographer Kenneth Adelman for an invasion of privacy. Adelman, who Streisand assumed was paparazzi, was instead taking photographs to document and study coastal erosion. In her quest for more privacy, Streisand’s efforts had the opposite effect.

Compromise Effect

compromise-effect
Single-attribute choices – such as choosing the apartment with the lowest rent – are relatively simple. However, most of the decisions consumers make are based on multiple attributes which complicate the decision-making process. The compromise effect states that a consumer is more likely to choose the middle option of a set of products over more extreme options.

Butterfly Effect

butterfly-effect
In business, the butterfly effect describes the phenomenon where the simplest actions yield the largest rewards. The butterfly effect was coined by meteorologist Edward Lorenz in 1960 and as a result, it is most often associated with weather in pop culture. Lorenz noted that the small action of a butterfly fluttering its wings had the potential to cause progressively larger actions resulting in a typhoon.

IKEA Effect

ikea-effect
The IKEA effect is a cognitive bias that describes consumers’ tendency to value something more if they have made it themselves. That is why brands often use the IKEA effect to have customizations for final products, as they help the consumer relate to it more and therefore appending to it more value.

Ringelmann Effect 

Ringelmann Effect
The Ringelmann effect describes the tendency for individuals within a group to become less productive as the group size increases.

The Overview Effect

overview-effect
The overview effect is a cognitive shift reported by some astronauts when they look back at the Earth from space. The shift occurs because of the impressive visual spectacle of the Earth and tends to be characterized by a state of awe and increased self-transcendence.

House Money Effect

house-money-effect
The house money effect was first described by researchers Richard Thaler and Eric Johnson in a 1990 study entitled Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice. The house money effect is a cognitive bias where investors take higher risks on reinvested capital than they would on an initial investment.

Heuristic

heuristic
As highlighted by German psychologist Gerd Gigerenzer in the paper “Heuristic Decision Making,” the term heuristic is of Greek origin, meaning “serving to find out or discover.” More precisely, a heuristic is a fast and accurate way to make decisions in the real world, which is driven by uncertainty.

Recognition Heuristic

recognition-heuristic
The recognition heuristic is a psychological model of judgment and decision making. It is part of a suite of simple and economical heuristics proposed by psychologists Daniel Goldstein and Gerd Gigerenzer. The recognition heuristic argues that inferences are made about an object based on whether it is recognized or not.

Representativeness Heuristic

representativeness-heuristic
The representativeness heuristic was first described by psychologists Daniel Kahneman and Amos Tversky. The representativeness heuristic judges the probability of an event according to the degree to which that event resembles a broader class. When queried, most will choose the first option because the description of John matches the stereotype we may hold for an archaeologist.

Take-The-Best Heuristic

take-the-best-heuristic
The take-the-best heuristic is a decision-making shortcut that helps an individual choose between several alternatives. The take-the-best (TTB) heuristic decides between two or more alternatives based on a single good attribute, otherwise known as a cue. In the process, less desirable attributes are ignored.

Bundling Bias

bundling-bias
The bundling bias is a cognitive bias in e-commerce where a consumer tends not to use all of the products bought as a group, or bundle. Bundling occurs when individual products or services are sold together as a bundle. Common examples are tickets and experiences. The bundling bias dictates that consumers are less likely to use each item in the bundle. This means that the value of the bundle and indeed the value of each item in the bundle is decreased.

Barnum Effect

barnum-effect
The Barnum Effect is a cognitive bias where individuals believe that generic information – which applies to most people – is specifically tailored for themselves.

Anchoring Effect

anchoring-effect
The anchoring effect describes the human tendency to rely on an initial piece of information (the “anchor”) to make subsequent judgments or decisions. Price anchoring, then, is the process of establishing a price point that customers can reference when making a buying decision.

Decoy Effect

decoy-effect
The decoy effect is a psychological phenomenon where inferior – or decoy – options influence consumer preferences. Businesses use the decoy effect to nudge potential customers toward the desired target product. The decoy effect is staged by placing a competitor product and a decoy product, which is primarily used to nudge the customer toward the target product.

Commitment Bias

commitment-bias
Commitment bias describes the tendency of an individual to remain committed to past behaviors – even if they result in undesirable outcomes. The bias is particularly pronounced when such behaviors are performed publicly. Commitment bias is also known as escalation of commitment.

First-Principles Thinking

first-principles-thinking
First-principles thinking – sometimes called reasoning from first principles – is used to reverse-engineer complex problems and encourage creativity. It involves breaking down problems into basic elements and reassembling them from the ground up. Elon Musk is among the strongest proponents of this way of thinking.

Ladder Of Inference

ladder-of-inference
The ladder of inference is a conscious or subconscious thinking process where an individual moves from a fact to a decision or action. The ladder of inference was created by academic Chris Argyris to illustrate how people form and then use mental models to make decisions.

Goodhart’s Law

goodharts-law
Goodhart’s Law is named after British monetary policy theorist and economist Charles Goodhart. Speaking at a conference in Sydney in 1975, Goodhart said that “any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes.” Goodhart’s Law states that when a measure becomes a target, it ceases to be a good measure.

Six Thinking Hats Model

six-thinking-hats-model
The Six Thinking Hats model was created by psychologist Edward de Bono in 1986, who noted that personality type was a key driver of how people approached problem-solving. For example, optimists view situations differently from pessimists. Analytical individuals may generate ideas that a more emotional person would not, and vice versa.

Mandela Effect

mandela-effect
The Mandela effect is a phenomenon where a large group of people remembers an event differently from how it occurred. The Mandela effect was first described in relation to Fiona Broome, who believed that former South African President Nelson Mandela died in prison during the 1980s. While Mandela was released from prison in 1990 and died 23 years later, Broome remembered news coverage of his death in prison and even a speech from his widow. Of course, neither event occurred in reality. But Broome was later to discover that she was not the only one with the same recollection of events.

Crowding-Out Effect

crowding-out-effect
The crowding-out effect occurs when public sector spending reduces spending in the private sector.

Bandwagon Effect

bandwagon-effect
The bandwagon effect tells us that the more a belief or idea has been adopted by more people within a group, the more the individual adoption of that idea might increase within the same group. This is the psychological effect that leads to herd mentality. What in marketing can be associated with social proof.

Moore’s Law

moores-law
Moore’s law states that the number of transistors on a microchip doubles approximately every two years. This observation was made by Intel co-founder Gordon Moore in 1965 and it become a guiding principle for the semiconductor industry and has had far-reaching implications for technology as a whole.

Disruptive Innovation

disruptive-innovation
Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.

Value Migration

value-migration
Value migration was first described by author Adrian Slywotzky in his 1996 book Value Migration – How to Think Several Moves Ahead of the Competition. Value migration is the transferal of value-creating forces from outdated business models to something better able to satisfy consumer demands.

Bye-Now Effect

bye-now-effect
The bye-now effect describes the tendency for consumers to think of the word “buy” when they read the word “bye”. In a study that tracked diners at a name-your-own-price restaurant, each diner was asked to read one of two phrases before ordering their meal. The first phrase, “so long”, resulted in diners paying an average of $32 per meal. But when diners recited the phrase “bye bye” before ordering, the average price per meal rose to $45.

Groupthink

groupthink
Groupthink occurs when well-intentioned individuals make non-optimal or irrational decisions based on a belief that dissent is impossible or on a motivation to conform. Groupthink occurs when members of a group reach a consensus without critical reasoning or evaluation of the alternatives and their consequences.

Stereotyping

stereotyping
A stereotype is a fixed and over-generalized belief about a particular group or class of people. These beliefs are based on the false assumption that certain characteristics are common to every individual residing in that group. Many stereotypes have a long and sometimes controversial history and are a direct consequence of various political, social, or economic events. Stereotyping is the process of making assumptions about a person or group of people based on various attributes, including gender, race, religion, or physical traits.

Murphy’s Law

murphys-law
Murphy’s Law states that if anything can go wrong, it will go wrong. Murphy’s Law was named after aerospace engineer Edward A. Murphy. During his time working at Edwards Air Force Base in 1949, Murphy cursed a technician who had improperly wired an electrical component and said, “If there is any way to do it wrong, he’ll find it.”

Law of Unintended Consequences

law-of-unintended-consequences
The law of unintended consequences was first mentioned by British philosopher John Locke when writing to parliament about the unintended effects of interest rate rises. However, it was popularized in 1936 by American sociologist Robert K. Merton who looked at unexpected, unanticipated, and unintended consequences and their impact on society.

Fundamental Attribution Error

fundamental-attribution-error
Fundamental attribution error is a bias people display when judging the behavior of others. The tendency is to over-emphasize personal characteristics and under-emphasize environmental and situational factors.

Outcome Bias

outcome-bias
Outcome bias describes a tendency to evaluate a decision based on its outcome and not on the process by which the decision was reached. In other words, the quality of a decision is only determined once the outcome is known. Outcome bias occurs when a decision is based on the outcome of previous events without regard for how those events developed.

Hindsight Bias

hindsight-bias
Hindsight bias is the tendency for people to perceive past events as more predictable than they actually were. The result of a presidential election, for example, seems more obvious when the winner is announced. The same can also be said for the avid sports fan who predicted the correct outcome of a match regardless of whether their team won or lost. Hindsight bias, therefore, is the tendency for an individual to convince themselves that they accurately predicted an event before it happened.

Read Next: BiasesBounded RationalityMandela EffectDunning-Kruger EffectLindy EffectCrowding Out EffectBandwagon Effect.

Main Guides:

Scroll to Top

Discover more from FourWeekMBA

Subscribe now to keep reading and get access to the full archive.

Continue reading

FourWeekMBA