10 faults in human thinking

1. Placebo Effect
2. Escalation of Commitment
3. Hyperbolic Discounting
4. Reactance
5. Herd Mentality
6. Halo effect
7. Self-fulfilling Prophecy
8. Pareidolia
9. Reactivity
10. Gambler's Fallacy.

1. Placebo Effect

Interesting Fact: The term "Placebo" is used when the outcomes 
are considered favorable, when the outcomes are negative or 
harmful; the term is "Nocebo."
2. Escalation of Commitment
The logical thing to do would be to "cut your losses" and drop the business.

3. Hyperbolic Discounting Hyperbolic discounting is the tendency for people to prefer a smaller, immediate payoff over a larger, delayed payoff 4. Reactance Interesting Fact: "reverse psychology" is an attempt to influence people using reactance. Tell someone (particularly children) to do the opposite of what you really want, and they will rebel and actually end up doing what you want. 5. Herd Mentality Interesting Fact: things that are unattractive, or that would never seem cool or popular now have had huge followings due to herd mentality. Examples include parachute pants, pet rocks, mullets, cone bras, tie-dye, sea monkeys, and the 1980s. 6. Halo effect Interesting Fact: The Physical Attractiveness Stereotype is when people assume that attractive individuals possess other socially desirable qualities, such as happiness, success and intelligence. This becomes a self-fulfilling prophecy when attractive people are given privileged treatment such as better job opportunities and higher salaries. 7. Self-fulfilling Prophecy Interesting Fact: Economic Recessions are self-fulfilling prophecies. Because a recession is 2 quarters of Gross Domestic Product (GDP) decline, you cannot know you are in a recession until you are at least 6 months into one. 8. Pareidolia Interesting Fact: the Rorschach Inkblot test was developed to use pareidolia to tap into people's mental states. 9. Reactivity Reactivity is the tendency of people to act or appear differently when they know that they are being observed. 10. Gambler's Fallacy The Gambler's fallacy is the tendency to think that future probabilities are altered by past events, when in reality, they are not.