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The two types of Cognitive Errors are:

October 20, 2017

Belief Perseverance & Processing Errors

Belief Perseverance is the tendency to cling to one’s previously held beliefs irrationally or illogically. The belief continues to be held and justified by committing statistical, information-processing, or memory errors.

Processing Errors describe how information may be processed and used illogically or irrationally in financial decision making.

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From → Economics

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