We are overconfident – thinking we’re better than the average person. Several studies of self-perception, show that for any given trait, more than 50% of people think they’re above average – from unsophisticated computer users who think they are cyber crime experts, to Harvard Business School students who think that they are better looking than everyone else. This is known as the Endowment Effect. Being overconfident can lead to many shortcomings; for example, overconfident students do significantly poorer on tests.
The result of this is overappraising things we own, decisions we make, and people like us underappraising things that challenge our self-regard.
Source:
Michael Simmons & Ian Chew
