People tend to overestimate their knowledge and abilities from "summary" of Judgment in Managerial Decision Making by Max H. Bazerman,Don A. Moore
Individuals often display a tendency to overestimate their own knowledge and abilities, a phenomenon that can have significant implications in the realm of managerial decision-making. This overestimation can lead individuals to make decisions based on flawed assumptions about their own competency, which can ultimately result in poor outcomes for themselves and their organizations. One reason for this overestimation is the cognitive bias known as the "overconfidence effect," which causes individuals to have more confidence in their own judgments and abilities than is objectively warranted. This bias can lead individuals to believe that they are more knowledgeable and skilled than they actually are, leading them to take risks or make decisions without fully considering the potential consequences. Another factor that contributes to this overestimation is the phenomenon of "illusory superiority," also known as the "above-average effect." This bias leads ind...
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