Asked by
briteny roundtree
on Oct 08, 2024Verified
When people convince themselves that they "knew all along" what was going to happen,when in fact their predictions were incorrect,they suffer from:
A) overconfidence bias.
B) self-serving bias.
C) framing bias.
D) hindsight bias.
Hindsight Bias
The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, even though it was not predictable.
Overconfidence Bias
The tendency of individuals to overestimate their own abilities, skills, or chances of success.
Predictions Incorrect
Situations where anticipated outcomes fail to materialize as expected due to various factors such as flawed assumptions or unforeseen events.
- Analyze the effect of cognitive biases such as overconfidence, hindsight bias, and confirmation bias on economic decisions.
Verified Answer
JF
Learning Objectives
- Analyze the effect of cognitive biases such as overconfidence, hindsight bias, and confirmation bias on economic decisions.