A team picks a vendor because the CEO recently read a news article praising that vendor, even though internal data suggests otherwise. Which bias is operating?

Question

BlackTom AI · Accepted Answer

The scenario presents a decision where a team selects a vendor primarily based on a recent news article favorable to that vendor, despite internal data suggesting the opposite. This sets up a bias driven by what is most readily recalled or salient in the moment.
Option 1: Illusion of control. This would involve the belief that one can influence outcomes that are actually outside one's control. In this case, the team is not expressing a false sense of control over the vendor’s performance; rather, they are giving more weight to a recent article than to objective data, so this option doesn’t fit well.
Option 2: Confirmation bias. This is the tendency to seek, interpret, and remember information that confirms preconceptions while discounting disconfirming evidence. While relevant in many decision contexts, the described behavior centers on the impact of a salient article rather than a systematic search for confirming evidence about a prior belief. It could contribute, but it’s not the best fit for the specific mechanism shown.
Option 3: Representativeness. This bias involves judging the likelihood of something based on how much it resembles a typical case or stereotype. Here, there’s no clear resemblance judgment to a stereotype; instead, the decision is driven by the immediacy and credibility of media coverage instead of matching internal criteria.
Option 4: Overconfidence. Overconfidence would mean the team believes its own judgment is more accurate than it actually is, potentially disregarding data. While plausibly present, the core mechanism described is about being swayed by a news article, not an inflated belief in one’s own judgment per se.
Option 5: Availability bias. This bias occurs when people rely on information that is most readily available or salient in memory—such as a recently reported news article—rather than on comprehensive data. In this scenario, the article’s prominence makes it more influential than the internal data, aligning closely with availability bias.
Overall, the situation best exemplifies availability bias by replacing or overshadowing substantive data with a memorable, easily recalled article.

33:620:302:01 MANAGEMENT SKILLS Final Exam

A team picks a vendor because the CEO recently read a news article praising that vendor, even though internal data suggests otherwise. Which bias is operating?

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