“The Difference Between Cognitive and Emotional Biases” for Morningstar Advisor [2010-09-10]

Justin A. Reckers and Dr. Robert A. Simon
Justin A. Reckers and forensic psychologist Dr. Robert A. Simon have co-authored an interesting article entitled “The Difference Between Cognitive and Emotional Biases” for Morningstar Advisor. Reckers and Simon regularly work together in the no-court divorce fields of collaborative divorce and divorce mediation as peacemakers and dispute-resolution experts. The latest in a series, this article looks at the broad implications of emotional biases versus cognitive biases, and at the continuum of active versus passive styles — and the implications for the advisor. “Clients who primarily manifest emotional biases will need their advisor to adapt to those biases and attempt to moderate their effects rather than try to remove them completely. Clients who primarily manifest cognitive biases will be helped more efficiently and effectively by the advisor’s attempt to remove the bias… Passive clients tend to be followers. They tend to take advice from friends and family without forming their own opinions. In divorce situations, these clients often make statements like ‘My friend said they got $2,000 a month in spousal support and I deserve the same”… The impact of the communication to a passively oriented client may take on such great power that they will rely implicitly upon it for decision-making, whether they consciously realize it or not. The underlying bias may be emotional, cognitive, or both.
“Published on August 19, 2010, here’s a link to the full article:http://www.morningstaradvisor.com/articles/article.asp?docId=20089