The irrational ways that we process information 6 make decisions using our own perspective and Incomplete information. The Endowment Effect Hedonic Adaptation Overprecision Cognitive biases

The question is asking about the irrational ways that we process information and make decisions using our own perspective and incomplete information. The options provided are the Endowment Effect, Hedonic Adaptation, Overprecision, and Cognitive biases.<br /><br />1. The Endowment Effect is a cognitive bias where people tend to overvalue things simply because they own them. This is not directly related to the processing of information or decision-making with incomplete information.<br /><br />2. Hedonic Adaptation refers to the tendency of humans to return to a relatively stable level of happiness despite positive or negative events or life changes. This is more about emotional well-being rather than decision-making with incomplete information.<br /><br />3. Overprecision is the tendency to be more confident than correct in our beliefs and judgments. This can lead to poor decision-making, especially when dealing with incomplete information.<br /><br />4. Cognitive biases are systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion. These biases can lead to irrational decision-making and are directly related to the processing of information and decision-making with incomplete information.<br /><br />Therefore, the correct answer is "Cognitive biases" as it is the most relevant to the question's focus on irrational ways of processing information and making decisions with incomplete information.