© Ralph Orlowski

A fresh study has confirmed that people are reluctant to change their minds and adapt their views, even when new information has been presented. This holds true even if they stand to lose money.

The research from the University of Iowa is based on previous studies indicating that people are particularly likely to stick to their original viewpoint when they’ve had to write their beliefs down– a phenomenon known as the ‘explanation effect’, which also affects future actions.

In the study, Tom Gruca, a professor of marketing at the Tippie College of Business, tried to find evidence of something called ‘confirmation bias’ – the tendency to give preference to existing information or beliefs, rather than considering alternative possibilities. He says equity analysts working on financial markets are particularly prone to this bias, with those who issue written forecasts being especially vulnerable to falling into the trap, despite having access to new data to influence them.

full article at :RT

 

 

 

 

 

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