What is the meaning of cognitive bias called action bias?

Action bias is a cognitive bias that refers to the tendency for individuals to prefer taking action rather than remaining inactive or making a decision to do nothing. This bias can lead individuals to make hasty decisions or take unnecessary risks in order to feel like they are doing something, even when inaction may be the more appropriate course of action. This bias is often driven by a desire to avoid feelings of regret or the fear of missing out on opportunities.

Action Bias

Cognitive bias in which individuals:

- Prefer to take action, even if it is not optimal.
- Overestimate the benefits and underestimate the risks of taking action.
- Are more likely to act than to wait and gather more information.

Causes:

- Cognitive dissonance: The discomfort of holding two opposing thoughts (e.g., wanting to make a decision but also being unsure).
- Impatience: Difficulty delaying gratification or tolerating uncertainty.
- Overconfidence: Believing one has more knowledge or ability than they actually do.

Consequences:

- Premature decision-making: Making decisions without considering all alternatives or consequences.
- Mistakes and missed opportunities: Not taking the time to gather sufficient information or consider the risks.
- Overactive behavior: Taking excessive or unnecessary actions that may be counterproductive.

Examples:

- Investing in a stock without researching its performance.
- Quitting a job without securing another one.
- Giving a speech without preparing adequately.