How is our behavior affected by recency bias?
Recent bias means that people tend to give more weight to recent events or information than older information. This can cause us to make decisions based on what we've just seen or experienced, rather than looking at the whole picture.
Examples of recency bias:
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Stock market investments: Suppose a stock rose sharply in the past week. Many people then think that it will continue to rise and invest in it, while ignoring that it may not have performed as well over a longer period of time.
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Sports: A football team wins the last three games, and fans are starting to think they will definitely become champions, even though they lost a lot of games before that. They disregard past performance.
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Work review: An employee works well all year, but makes a mistake just before the evaluation. The manager especially remembers that mistake and gives a lower rating than what is actually deserved.
