Psychological tendencies we are all susceptible to include:

• Having a pre-conceived and inaccurate notion of reality for a particular setting. This is often referred to as "framing," where the frame is the “assumed reality,” which may or may not be objectively accurate. While a frame may add much needed structure, it may also introduce blind spots (we are oblivious to inaccuracies in our frame). Once we’ve formed a frame, there is a tendency to assume it is comprehensive, when in reality there are situations in which it is inadequate or incomplete. One of the biggest problems with frames is that we are often unaware we have them and this makes it difficult to adjust them, or to accommodate to the frames of others.
• The tendency to overweight current events at expense of longer term averages.
• "Anchoring” too much to a known (and comfortable) category or pattern. This can be thought of as clinging to the "status quo" rather than having the courage to blaze a new trail.
• "Incrementalism" in which we adjust too little from the anchor, even when new information suggests a bolder move may be more appropriate.
• Seeking to recoup sunk costs, often suffering greater losses in the process, when the rational approach is to walk away from those sunk costs.
• Selectively seeking evidence to confirm our preconceived notions and beliefs, rather than accepting all evidence, regardless of where it points us.
• Inaccurately estimating probabilities of various events, without the benefit of regression or similar statistical analysis utilizing a lot of data. We are especially bad at quantifying products of probabilities and at forecasting events which are far in the future.
• Exhibiting risk aversion. When faced with two choices promising similar expected outcomes, the risk averse person will elect the choice with the lowest risk. Most people are risk averse by nature. One outcome of this natural conservatism is that we are susceptible to herding behavior or conformism. While the herd provides a sense of security, we abdicate our responsibility as leaders by following a little-understood path, merely for momentary comfort.
• Thrill seeking. Sometimes we impulsively commit, seeking an adrenaline high. This can be a “bull in a China shop” scenario, where we find ourselves in unfamiliar and unexpected territory, and our boldness causes great destruction.
• Perseverance in a belief even when we no longer accept the evidence on which it was originally based. [T, CV]
• "Memory compartmentalization" in which we hold inconsistent beliefs but are unable to make the connection because those conflicting beliefs are stored in different memory contexts. [MR]
• "Emotional tagging" in which emotional "baggage" is tagged onto memories, influencing future actions. For example, a very negative historical association with a person or corporate entity may make us reluctant to do business with them in future, despite (objective) benefits from doing so. [HBR CWF]
• A tendency to get caught up in tactical issues at the expense of strategic (big picture) considerations.

Note: references for this section are coded within square brackets. The complete citations may be found here.