Behaviouronomics: Motivated Reasoning

An oxymoron is a figure of speech in which apparently contradictory terms appear in conjunction. To me, the word motivated reasoning seems like an oxymoron. Let me explain.

Sound reasoning should be objective — devoid of any or all biases/motivations. Right?

But the human mind is a house of paradoxical features. As it tries to get rid of one bias, it leaves the backdoor open for the same bias. Motivated reasoning is a bias that affects that part of our mind which is often referred to as rational and objective.

Let me give you a quick refresher on System 1 Vs. System 2 concept.

World famous psychologist Daniel Kahneman has done revolutionary work in the field of understanding human cognition. His two systems framework is a brilliant mental construct to decode how our brain makes decisions. System 1 is the result of our reflexive brain — quick and eager to jump to conclusions. System 2 is our reflective brain — slower, effortful, logical, and less prone to error.

Want to Read More? This content is exclusive for members of Value Investing Almanack. Login to read if you are a member. Else, click here to subscribe.