I discuss the first cause of human misjudgment that Charlie Munger spoke about in his landmark speech "The Psychology of Human Misjudgment."

He called it the "Reward and Punishment Superresponse Tendency," which generally highlights the idea that humans tend to respond strongly to both rewards and punishments. It suggests that when people are offered rewards or faced with punishments, their behavior may be significantly influenced or exaggerated in response.

A more specific concept that is a result of this tendency is the "Incentives Caused Bias," which suggests that when we are motivated by incentives (such as financial rewards, recognition, or other benefits), we may unconsciously or consciously act in ways that align with our incentives, even if it goes against our better judgment or ethical principles.