Wishful Thinking and Perception: II

When things go awry, we often discover that wishful thinking played a role. As we've seen, it can affect our perceptions, our interpretations of those perceptions, the inferences we draw from those interpretations, and our choices of responses. We continue now exploring how it can affect that first stage, our perceptions.

Sunk cost effect

The sunk cost effect makes us more likely to continue along lines where we already have investments. With respect to perceptions, it causes us to acquire more information about familiar options, as opposed to options about which we know less. Since our preferences (our wishes) often set priorities, sunk costs tend to curtail acquisition of information about options that are inconsistent with our wishes, even when those options have superior potential. Our wished-for options therefore seem superior if for no other reason than that we know more about them.

Have you set research priorities according to what you wish were true? Have you invested in learning more about the familiar, or do you set priorities on the basis of objectively assessed potential?

Sunk time effect

Given the analogy between time and other finite resources, it's surprising that investigations into a "sunk time effect" have begun so recently. But evidence does suggest its existence. [Navarro & Fantino 2009] Having spent time investigating what we wish were true, we're more likely to continue along those lines, even when other options are more promising.

Have you spent so much time on preferred options that you feel you have no time to examine alternatives? Was there an earlier point when you could have considered alternatives?

Anchoring

Anchoring is the tendency to rely too much on information received first, compared to later arriving information. The first information sets an "anchor." It becomes the standard against which we evaluate all subsequent information. When we gather information in support of our wishes first, as is often done, our wishes can become anchors.

Imagine how you would have evaluated later-arriving information if it had arrived earlier. Would it have had a different effect then? Would it have changed the questions you asked?

Dunning-Kruger effect

The Dunning-Kruger When we set learning priorities based
on our preferred approaches, we bias
our learning in favor of our preferences
and at the expense of possibly
superior alternativeseffect has several consequences. [Kruger & Dunning 1999] It includes the tendency of people who are less competent to overestimate their own competence, the tendency of the more competent to underestimate their own competence, and everyone's tendency to confuse confidence with competence. The least competent are often the most confident; the least confident are often the most competent. We're less likely to accept advice from cautious experts than from confident ignoramuses.

Is the substance of the advice you receive truly all that matters? Is the manner of the advisor, whether confident or cautious, a factor in your evaluation of that advice? Is the degree of alignment between that advice and what you wanted to hear completely irrelevant?

We'll investigate how wishful thinking affects our interpretation of data next time.   First issue in this series    Next issue in this series   Top    Next Issue

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More about the Dunning-Kruger Effect

The Paradox of Confidence  [January 7, 2009]

Most of us interpret a confident manner as evidence of competence, and a hesitant manner as evidence of lesser ability. Recent research suggests that confidence and competence are inversely correlated. If so, our assessments of credibility and competence are thrown into question.

How to Reject Expert Opinion: II  [January 4, 2012]

When groups of decision makers confront complex problems, and they receive opinions from recognized experts, those opinions sometimes conflict with the group's own preferences. What tactics do groups use to reject the opinions of people with relevant expertise?

Devious Political Tactics: More from the Field Manual  [August 29, 2012]

Careful observation of workplace politics reveals an assortment of devious tactics that the ruthless use to gain advantage. Here are some of their techniques, with suggestions for effective responses.

Overconfidence at Work  [April 15, 2015]

Confidence in our judgments and ourselves is essential to success. Confidence misplaced — overconfidence — leads to trouble and failure. Understanding the causes and consequences of overconfidence can be most useful.

Wishful Significance: II  [December 23, 2015]

When we're beset by seemingly unresolvable problems, we sometimes conclude that "wishful thinking" was the cause. Wishful thinking can result from errors in assessing the significance of our observations. Here's a second group of causes of erroneous assessment of significance.

Cognitive Biases and Influence: I  [July 6, 2016]

The techniques of influence include inadvertent — and not-so-inadvertent — uses of cognitive biases. They are one way we lead each other to accept or decide things that rationality cannot support.

The Paradox of Carefully Chosen Words  [November 16, 2016]

When we take special care in choosing our words, so as to avoid creating misimpressions, something strange often happens: we create a misimpression of ignorance or deceitfulness. Why does this happen?

Risk Acceptance: One Path  [March 3, 2021]

When a project team decides to accept a risk, and when their project eventually experiences that risk, a natural question arises: What were they thinking? Cognitive biases, other psychological phenomena, and organizational dysfunction all can play roles.

Cassandra at Work  [April 13, 2022]

When a team makes a wrong choice, and only a tiny minority advocated for what turned out to have been the right choice, trouble can arise when the error at last becomes evident. Maintaining team cohesion can be a difficult challenge for team leaders.

Embedded Technology Groups and the Dunning-Kruger Effect  [March 12, 2025]

Groups of technical specialists in fields that differ markedly from the main business of the enterprise that hosts them must sometimes deal with wrong-headed decisions made by people who think they know more about the technology than they actually do.

Footnotes

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