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People overestimate their abilities from "summary" of Perfectly Confident by Don A. Moore

We all have a tendency to think that we are better at things than we actually are. This phenomenon is not limited to a few individuals; rather, it is a widespread cognitive bias that affects most people. We consistently overestimate our abilities in various domains, from driving to playing sports to making financial decisions. This overconfidence can lead us to take risks that we shouldn't or to make decisions that are not in our best interests. One reason for this overestimation is that we tend to focus on our successes and downplay our failures. When we succeed at something, we attribute it to our skills and abilities, while when we fail, we attribute it to external factors beyond our control. This leads us to have an inflated sense of our capabilities, as we only see the positive outcomes and ignore the negative ones. Another reason for this overestimation is that we lack accurate feedback about our abilities. Without objective feedback, we rely on our own perceptions and beliefs, which are often skewed towards overconfidence. We may think we are better at something than we actually are because we have not received any feedback to the contrary. Moreover, our desire to maintain a positive self-image plays a role in this overestimation. We want to see ourselves in a positive light, so we tend to overestimate our abilities to boost our self-esteem. This need for self-enhancement can cloud our judgment and prevent us from accurately assessing our skills and capabilities.
  1. The tendency to overestimate our abilities is a common cognitive bias that affects most people. This overconfidence can have negative consequences, as it can lead us to take risks and make decisions that are not in our best interests. By recognizing this bias and seeking objective feedback, we can become more realistic in our self-assessments and make better decisions in the future.
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Perfectly Confident

Don A. Moore

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