What is the Distinction effect?
The Distinction effect is a cognitive bias which means that we tend to view two options as more different when evaluating them at the same time, rather than separately.
Why this bias is dangerous?
This can be dangerous because it can lead us to make worse decisions and take worse actions. For example, if you pay for a healthcare insurance plan but don’t read the contract, you might discover later on that there are things included in the contract which you would have never agreed upon.
How does it work?
When people try to understand their environment they seek similarities with what they already know so they will compare new options to previous experiences. However, since most of our past experiences are unique events, by comparing the current situation with those past events we will be ignoring the dissimilarities between those experiences and the current situation.
Why do people use this bias?
This can happen when you need to choose between different options, such as choosing a college major, or buying a new appliance for your house. The problem is that we tend not to consider each option separately so we don’t compare all the pros and cons of each option.
How do people use this bias?
We usually ignore much more information than we actually think about and sometimes even resort to things like stereotypes which aren’t accurate at all. In fact, one study found that from over 100 unique positive characteristics of two options (e.g., expensive vs inexpensive), participants could only accurately identify 1-2 characteristics of each option.
How can we create this bias?
Sometimes information is presented in a way that makes it harder for us to compare the options, making it more difficult for someone to generate an accurate comparison between different options. For example, if you’re choosing between two motorcycles and one has better fuel consumption but worse acceleration than the other, then providing them with information about how much you will save on gas versus how much time it takes to reach top speed will make their comparison much easier.
However, when we are comparing things simultaneously we might rely on external factors such as who is providing the information so we might opt for the motorcycle which was provided by our friend because we trust him even though he might not be well informed about these things.
How to avoid this bias?
The best way to avoid the Distinction effect is just by comparing different options separately and then choosing the option that has more benefits than drawbacks for you, rather than trying to guess whether they are similar or different.
Which profession use the Distinction effect?
This error can happen in every profession where people have to choose between different options, but it can be seen more often when people need to compare complicated things like college degrees during their job search.
Distinction effect conclusion:
The distinction effect happens when we try to understand our environment based on comparisons with previous experiences so we tend not consider all the relevant information before making a decision because we find it easier. Since most of our past experiences are unique events, by comparing the current situation with those past events we will be ignoring the dissimilarities between those experiences and the current situation. This can lead us to make worse decisions so being aware of this cognitive bias might help you in your daily life.
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