When it comes to other people, however, we cannot see what they are thinking. When we are the actors in a situation, we are able to observe our own thoughts and behaviors. While there are many factors that may play a role, perspective plays a key role.

A fellow student bombed a test because they lack diligence and intelligence (and not because they took the same test as you with all those trick questions).

A colleague screwed up an important presentation because he’s lazy and incompetent (not because he also had jet lag).

When it comes to explaining other people’s actions, however, we are far more likely to attribute their behaviors to internal causes.

You might say you failed an exam because the teacher posed too many trick questions.

You might complain that you botched an important meeting because you had jet lag.

When it comes to our own actions, we are often far too likely to attribute things to external influences. The way we perceive others and how we attribute their actions hinges on a variety of variables, but it can be heavily influenced by whether we are the actor or the observer in a situation.

The actor-observer bias is the tendency to attribute our actions to external influences and other people's actions to internal ones. However, it can sometimes lead to poor choices and make it more difficult for people to consider other factors that might also be important. For instance, it can influence how much you are willing to pay for your home. Like other cognitive biases, anchoring can have an effect on the decisions you make each day. Other factors such as priming and mood also appear to have an influence. Some research suggests that the source of the anchor information may play a role. While the existence of the anchoring bias is well documented, its causes are still not fully understood. The physician’s first impressions of the patient often create an anchoring point that can sometimes incorrectly influence all subsequent diagnostic assessments. Doctors can become susceptible to the anchoring bias when diagnosing patients.Hearing a random number can influence estimates on completely unrelated topics.The first number voiced during a price negotiation typically becomes the anchoring point from which all further negotiations are based.The anchoring bias is the tendency to be overly influenced by the first piece of information that we hear. This is often indicative that the confirmation bias is working to 'bias' their opinions.

People on two sides of an issue can listen to the same story and walk away with different interpretations that they feel validates their existing point of view. It also helps protect self-esteem by making people feel that their beliefs are accurate. One is that only seeking to confirm existing opinions helps limit mental resources we need to use to make decisions. There are a few reasons why this happens. Not considering all of the facts in a logical and rational manner.Refusing to listen to the opposing side.Choosing news sources that present stories that support your views.Only following people on social media who share your viewpoints.Only paying attention to information that confirms your beliefs about issues such as gun control and global warming.Through this bias, people tend to favor information that reinforces the things they already think or believe. The confirmation bias is the tendency to listen more often to information that confirms our existing beliefs.

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