Theories about decision errors

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Here are academic theories about how we make errors when deciding.

Ambiguity Effect: We prefer a known probability to an unknown one.
Anchoring and Adjustment Heuristic: we base estimates on known anchors.
Availability Heuristic: recent events seem more likely.
Bias Blind Spot: We do not compensate enough for our own bias.
Biased sampling: we base decisions on available small samples.
Bounded Rationality: we only use limited logic in decisions.
Conjunction Fallacy: an overlap seems twice as likely.
Disconfirmation bias: Agreeing with what supports beliefs and vice versa.
Endowment Effect: we value more highly the things we own.
Focusing Effect: We pay more attention to some things than others.
Gambler's Fallacy: Belief we can predict random events.
Hot Hand Phenomenon: Assuming success breeds success.
Illusory Correlation: we see correlation where it is not.
Mood-Congruent Judgment: Our moods bias our judgments.
Neglect of probability bias: Ignoring probability; assuming certainty.
Overconfidence Barrier: we are too confident in our own judgments.
Prospect Theory: we value certain gains and try to avoid certain losses.
Psychological Accounting: we care about direct outcomes. We also compare in ratios rather than absolute amounts.
Representativeness Heuristic: we guess probability from a 'comparable' event.
Restraint Bias: Assuming we can control urges.
Social Judgment Theory: we vary our judgments about an anchor position.
Sunk-Cost Effect: we are reluctant to pull out of an investment.

See also