Cognitive dissonance occurs when a person believes in two contradictory things at the same time. Within investment and in other areas, not resolving it can lead to irrational decision-making. Dissonance is an inevitable consequence of making a decision, but accepting it could lead to better choices. Cognitive dissonance can affect people in many ways.
The effects may be related to the discomfort of one's own dissonance or to the defense mechanisms that a person adopts to deal with it. Cognitive dissonance refers to a situation that involves conflicting attitudes, beliefs, or behaviors. This causes a sense of mental discomfort that leads to an alteration in one of the attitudes, beliefs or behaviors to reduce discomfort and restore balance. The theory of cognitive dissonance has been extensively researched in several situations to develop the basic idea in more detail, and several factors have been identified that may be important in changing attitudes.
If researchers tend to analyze information in a way that supports conclusions that are consistent with their own beliefs, then cognitive dissonance may threaten the objective methodology on which much of today's academic world is based. In support, the author states that people's cognitive dissonance can influence the probabilistic models used to make political decisions. Cognitive dissonance was first investigated by Leon Festinger, based on a participatory observation study of a cult that believed that the Earth was going to be destroyed by a flood and what happened to its members, in particular those who were truly committed and who had left their homes and jobs to work in the cult when the flood didn't occur. How cognitive dissonance affects friendship, dating and marriage, as well as how it develops in abusive relationships.
An important perspective related to decision-making is cognitive dissonance, which is generally described as common ways of thinking that have a negative bias. Finally, many of the studies that support the theory of cognitive dissonance have low ecological validity. Cognitive dissonance occurs when a person has two related but contradictory cognitions or thoughts. Cognitive dissonance occurs when there is an uncomfortable tension between two or more beliefs that are held simultaneously.
A person who feels defensive or unhappy might consider the role that cognitive dissonance might play in these feelings. If you have doubts about the choice, you are experiencing cognitive dissonance, that is, the discomfort, tension, or anxiety that results from having two conflicting beliefs at the same time. A deeper analysis of the effects of cognitive dissonance leads to worrying conclusions in the academic world and political society. Cognitive dissonance is the discomfort a person feels when their behavior doesn't align with their values or beliefs.
However, Festinger believed that all people are motivated to avoid or resolve cognitive dissonance because of the discomfort it causes. Alternatively, they can reduce cognitive dissonance by being aware of their values and seeking opportunities to live those values.