Action Bias

We have a deep-seated preference for doing something over doing nothing — even when inaction is the objectively better strategy. Activity feels productive even when it isn't.

• Soccer goalkeepers dive to one side during penalty kicks nearly every time — statistically, staying in the center is more effective, but standing still feels wrong.
• Doctors prescribe medication for conditions that would resolve naturally — because 'watchful waiting' feels negligent even when it is the correct treatment.
• Investors trade too frequently during market volatility, accumulating costs and taxes that a buy-and-hold strategy would avoid.