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Vanderbilt Law Review Volume 75Issue 5Article 2102022Exponential Growth Bias and the Law: Why Do We Save Too Little, Borrow Too Much, and Fail to React on Time to Deadly Pandemics and Climate Change?
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Understand the concept of exponential growth and its impact on bias
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Exponential growth bias refers to a cognitive bias where individuals overestimate the speed and scale at which growth occurs, especially in contexts involving technology and population increase.
Typically, researchers, analysts, and organizations that deal with data involving growth metrics, projections, or analyses in various fields are required to address and report on exponential growth bias.
Filling out information related to exponential growth bias involves collecting relevant data, analyzing growth trends, and documenting assumptions and methodologies that illustrate the presence of bias.
The purpose of addressing exponential growth bias is to provide accurate insights into growth projections and to prevent misinterpretation of data that could lead to flawed decision-making.
Reports on exponential growth bias should include data sources, growth assumptions, methods of analysis, potential impacts of bias, and recommendations to mitigate misinterpretations.
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