Cognitive Biases in Functional Analysis Interviews – Part 1: Introduction and Biases Affecting Selection of the Persons to Be Interviewed

Functional analysis is a vital component of the transfer pricing analysis and functional analysis interviews are a popular way to perform it. However, functional analysis interviews often suffer from unintentional or inadvertent blind spots on the side of the participants to the interviews, known as “cognitive biases”. This is the first of a series of articles that describe some of the most commonly observed cognitive biases, their effects, and possible ways to avoid the impact of these biases.