Egocentric bias is the tendency for individuals to prioritize their own needs and perspectives over those of others.

This bias causes individuals to rely heavily on one’s own perspective and to give excessive weight to personal experiences when making judgments and decisions.

The Endowment Effect occurs when people place a higher value on something simply because they own it or are associated with it. This is an emotional bias that occurs when we overvalue something that is ours, regardless of how the market values it.

This bias also accounts for people retaining a physical asset or objects that they own, even when they would not likely acquire the same object if they did not own it.

False consensus bias is the tendency for individuals to overestimate the extent to which their beliefs, values, attitudes, preferences, or opinions are normal, typical, and shared by others.

This bias explains why individuals tend to overestimate the degree of conformity among peers while underestimating the personal uniqueness of individual peers.

Essentially, people often believe that their own attitudes and behaviors are more widely shared than they actually are.

The Framing Effect is the tendency to be influenced by the way information is presented or framed. This bias can lead to leaders making decisions based on how information is presented, rather than its actual content.

The framing effect explains why people react differently to a particular choice depending on whether it is framed as a loss or a gain.

Functional fixedness bias explains why people will use an object only in the way it is traditionally used. This bias limits an individual’s ability to imagine and use something in more ways than its traditional purpose.

This bias hinders creativity and problem-solving by focusing only on the most familiar or obvious functions of something.

Groupthink is a psychological phenomenon where the desire for harmony and conformity in a group results in irrational or dysfunctional decision making.

Groupthink occurs when a group of people collectively make irrational or problematic decisions because of the pressures they feel to conform and maintain unanimity within the group.

The key distinction between groupthink and conformity bias is that groupthink specifically refers to decision-making within a group context, where the desire for group cohesion leads to compromised decision quality.

Conformity bias, on the other hand, is a broader tendency to behave similarly to others regardless of the decision-making context. Due to a desire for conformity and harmony in the group, irrational decisions are often made in the interest of minimizing conflict.

The Halo Effect is the tendency to make global judgments based on a single characteristic or attribute. This can lead to leaders making decisions based on superficial characteristics, rather than considering all relevant information.

In leadership, the halo effect can be seen when someone is perceived as a strong leader due to their charisma, for example, and this positive perception may then influence other judgments about their abilities and performance even if those judgments are not based on concrete evidence.

The Horns Effect is the opposite of the Halo Effect. The horns effect, in contrast, occurs when an individual’s overall impression of a person is negatively influenced by one unfavorable trait or experience.

This bias leads to an unfairly negative perception of the person, based on one particular aspect or incident.

The Illusion of Control bias occurs when individuals overestimate their ability to control or influence events and outcomes that are largely determined by chance or external factors.

This bias influences leaders to believe they have more control over events than they actually do, swaying them to make decisions based on a false sense of control, often resulting in unrealistic optimism, poor decision-making and often, bad outcomes.

The Illusion of Validity bias is the tendency to overestimate the accuracy of one’s judgments, specifically in interpretations and predictions regarding a given data set.

Illusory Superiority bias refers to the tendency for people to overestimate their abilities and attributes relative to the same qualities and abilities of others.

For example, a person might believe they are more intelligent than the average person.

Illusory superiority is sometimes referred to the Dunning-Kruger Effect. However, these biases are different.

The Dunning-Kruger effect is where people with low ability in a specific area or at a task overestimate their ability. It is characterized by a lack of self-awareness that prevents a person from accurately assessing their skills.

The Dunning-Kruger Effect is more about specific incompetence in a particular area and one's lack of awareness regarding their lack of capability in that specific area. With this bias, the less skilled or knowledgeable a person is, the more they overestimate their own skills or knowledge. And highly skilled individuals might underestimate their relative competence, wrongly assuming that tasks which are easy for them are also easy for others.

While both biases involve some form of overestimation of one’s abilities or qualities, illusory superiority is a broader bias that refers to general traits or abilities.

Intuition bias refers to the inclination to make decisions based on gut feelings, instincts, emotions, hunches, or intuition rather than relying on more systematic and evidence-based approaches to decision-making.

While intuition can be valuable in certain situations, relying on it too heavily can lead to poor judgments and suboptimal decisions.