Memory distortions  

Hindsight bias has similarities to other memory distortions, such as 
misinformation effect 
and false  autobiographical memory  .  [27]  Misinformation effect occurs after an
event is witnessed; new information received after the fact influences how the
person remembers the event, and can be called post-event misinformation. This
is an important issue with an  eyewitness testimony
 . False autobiographical
memory takes place when suggestions or additional outside information is
provided to distort and change memory of events; this can also lead to  false
memory syndrome  . At
times this can lead to the creation of new memories that are completely false
and have not taken place.

All three of these memory distortions contain a three-stage procedure.  [27]
The details of each procedure are different, but all three can result in some
form of  psychological manipulation  and alteration of memory. Stage one is different
between the three  paradigms  , although all
involve an event, an event that has taken place (misinformation effect), an
event that has not taken place (false autobiographical memory), and a judgment
made by a person about an event that must be remembered (hindsight bias).
Stage two consists of more information that is received by the person after
the event has taken place. The new information given in hindsight bias is
correct and presented upfront to the person, while the extra information for
the other two memory distortions is wrong and presented in an indirect and
possibly manipulative way. The third stage consists of recalling the starting
information. The person must recall the original information with hindsight
bias and misinformation effect, while a person that has a false
autobiographical memory is expected to remember the incorrect information as a
true memory.  [27]

Cavillo (2013) tested whether there is a relationship between the amount of
time the people performing the experiment gave the participants to respond and
the participant's level of bias when recalling their initial judgements. The
results showed that there is in fact a relationship; the hindsight bias index
was greater among the participants who were asked to respond more rapidly than
among the participants who were allowed more time to respond.  [28]

Distortions of autobiographical memory produced by hindsight bias have also
been used as a tool to study changes in students' beliefs about paranormal
phenomena after taking a university level skepticism course. In a study by
Kane (2010),  [29]  students in Kane's skepticism class rated their level of
belief in a variety of paranormal phenomena at both the beginning and at the
end of the course. At the end of the course, they also rated what they
remembered their level of belief had been at the beginning of the course. The
critical finding was that not only did students reduce their average level of
belief in paranormal phenomena by the end of the course, but they also falsely
remembered the level of belief they held at the beginning of the course,
recalling a much lower level of belief than what they had initially rated. It
is the latter finding that is a reflection of the operation of hindsight bias.
[30]

To create a false autobiographical memory, the person must believe a memory
that is not real. To seem real, the information must be influenced by their
personal judgments. There is no real episode of an event to remember, so this
memory construction must be logical to that person's knowledge base. Hindsight
bias and the misinformation effect recall a specific time and event; this is
called an  episodic memory 
process.  [27]  These two memory distortions both use memory-based mechanisms
that involve a memory trace that has been changed.  Hippocampus
 activation takes place when an episodic
memory is recalled.  [31]  The memory is then available for alteration by new
information. The person believes that the recalled information is the original
memory trace, not an altered memory. This new memory is made from accurate
information, and, therefore, the person does not have much motivation to admit