Learning how these biases work is a first step to guarding ourselves against becoming irrational when managing money when we want to save, be more rational shoppers, and invest.
Sometimes referred to as buyer’s remorse after making a particular purchase, choice supportive bias helps us to justify that discomfort we may feel post-purchase.
Coined by Galai & Sade in their 2006 study, the ostrich effect means “avoidance of apparently risky financial situations by pretending it doesn’t exist.”