The Influence of Cognitive Biases on
Decision-Making in the Public Sector.
Name: GUILHERME FREITAS CAMPOS
Publication date: 31/01/2025
Examining board:
Name |
Role |
|---|---|
| DANIEL NASCIMENTO E SILVA | Examinador Externo |
| ROQUEMAR DE LIMA BALDAM | Examinador Interno |
| THALMO DE PAIVA COELHO JUNIOR | Presidente |
Summary: The decision-making process in the public sector plays a crucial role in public
administration, directly impacting efficiency, equity, and social well-being. However,
decisions in this context are not always rational, as they can be influenced by cognitive
biases, potentially leading to negative outcomes such as inefficient resource allocation,
inadequate public policy implementation, and the erosion of public trust in government
officials. Biases such as anchoring, sunk costs, overconfidence, availability, free effect,
ownership effect, and status quo bias can distort judgment and compromise the quality
of decisions. The main objective of this study is to analyze how public servants perceive
and understand the influence of cognitive biases in decision-making and how they
manage these factors. It also seeks to explore possible strategies to mitigate biases
when they may be harmful. Theoretically, the research is based on literature related to
Prospect Theory and Behavioral Economics, focusing on cognitive biases and their
practical implications, supported by a systematic literature review on the topic. Regarding
methods and procedures, semi-structured interviews were conducted with public
servants holding or substituting for leadership positions or receiving additional
compensation for special duties, with the Federal University of Espírito Santo as the
research locus. The collected data were analyzed using content analysis in three stages:
pre-analysis, material exploration, and results processing. Responses were categorized
based on the interviewees’ level of understanding of cognitive biases, classified into null,
vague, partial, and complete comprehension, according to indicators of clarity, depth,
and connection with the core concept. The findings highlight that managers generally
lack prior knowledge of cognitive biases, both broadly and specifically. However, when
introduced to these concepts, they demonstrated comprehension, indicating that many
public managers have only a limited understanding of biases and their implications for
their daily routines and decision-making processes. In conclusion, certain cognitive
biases, such as status quo bias, free effect, overconfidence, and ownership effect, seem
to be more easily understood by public servants, suggesting a correlation with the nature
of the public sector. Together with the tools identified by managers, the study suggests
practices to reduce the influence of cognitive biases. As a technical product, an
educational material was developed with practical guidelines and strategies focused on
mitigating cognitive biases in the public sector. The purpose of this material is to provide
recommendations and guidelines for implementing these strategies in decision-making
processes, aiming to promote a more efficient and informed public administration.
