
The ostrich effect is the tendency to avoid negative information — to deliberately bury your head in the sand rather than confront data that may be distressing or challenging.
The name comes from the false belief that ostriches bury their heads in sand to avoid predators. (They don't — they lower their heads to tend their eggs.) The metaphor stuck because the human behavior is real even if the ostrich's isn't.
Gal and Shalev studied investor behavior during the 2008 financial crisis. Investors checked their portfolio balances significantly less often during market downturns than during upswings — deliberate information avoidance that prevented rational rebalancing decisions.
The information you're avoiding is the information most likely to require action. The cost of avoidance typically compounds over time. Earlier knowledge almost always leads to better outcomes.
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