167. Hindsight Bias: Why Hindsight is Definitely NOT 20/20, a Behavioral Economics Foundations Episode

<p><span style="font-weight: 400;">Today’s episode is all about hindsight bias. You have probably heard the phrase “Hindsight is 20/20” and maybe even said it yourself on occasion. Well, I hate to burst your bubble, but this simply isn’t true. </span></p> <p><span style="font-weight: 400;">We humans have a hindsight bias that makes us believe we knew something “all along” when reflecting back on an incident, and this can cause all sorts of problems when making future decisions. I will cover this throughout today’s episode as well as tips for how to combat hindsight bias so it has less of an impact on you.</span></p> <h3><span style="font-weight: 400;">Show Notes:</span></h3> <ul> <li><span style="font-weight: 400;">[00:07] Today’s behavioral economics foundations episode is about hindsight bias.</span></li> <li><span style="font-weight: 400;">[02:21] When we think about our brains and all the amazing things they do, much of what we are accessing are memories.</span></li> <li><span style="font-weight: 400;">[02:47] Our memories are basically inaccurate renditions our brains tell us and every time we access them, we change them a little. So, the more you think about something, the less and less it is like the original version.</span></li> <li><span style="font-weight: 400;">[03:28] Memories get further and further from the truth as time goes on, especially for those memories which are recalled again and again.</span></li> <li><span style="font-weight: 400;">[04:20] Even reading about an event in history, which feels as though it must be fully accurate, is missing details and important pieces that people didn’t even think to include or pay attention to.</span></li> <li><span style="font-weight: 400;">[06:01] In reflecting back on an event the brain will assume it has all the information on: what happened, why, and assume that it knows what to infer from that for the next time you encounter a situation like this. The problem, of course, is that you don’t have all the information.</span></li> <li><span style="font-wei