What distinguishes hedonic editing from cognitive dissonance ?
what’s hedonic editing?
Cognitive dissonance comes from having a view that isn’t backed by actions. For example, “I am smart”, but everything I do is dumb. In order for me to continue to hold the I am smart view I have to reconcile the two things. People use hedonic editing to reconcile their view with their actions to avoid cognitive dissonance.
From my notes: (Promise i didn’t remember this) Hedonic editing: Investors prefer some frames to others. Some appear to tolerate risk more readily when they face prospect of a loss as opposed to when they don’t. It all comes back to investors being loss averse and that this results in more risk seeking behavior. Cognitive Dissonance is a disagreement between one’s opinions and actions. Individuals, in an attempt to avoid this, will only remember the good investments they have made (hindsight bias) so that their memories don’t disagree with their opinion of their own abilities.
another good (and short) way to remember cog. disson: mismatch btw. perception and reality