What is Overconfidence Bias

What is Overconfidence Bias Overconfidence bias is a cognitive bias that can have significant consequences for decision-making in various domains, such as finance, politics, and everyday life. It refers to the tendency to overestimate one's abilities, knowledge, and control over outcomes. This bias can lead to poor decisions, risk-taking behavior, and negative outcomes, such as financial losses, failed projects, or missed opportunities. Recognizing and addressing overconfidence bias is essential for improving decision-making accuracy and reducing potential negative consequences. In this blog post, we will explore the types of overconfidence bias, including the illusion of control, planning fallacy, Dunning-Kruger [...]