Overconfidence Effect

The overconfidence Effect is the tendency to be more confident in your own abilities, such as driving, teaching, or recruiting, than is objectively reasonable.

Strategic

What is the overconfidence effect?

This is the tendency to be more confident in your own abilities, such as driving, teaching, or recruiting, than is objectively reasonable. The Dunning-Kruger Effect is a similar bias which occurs when your lack of knowledge and skills in a certain area causes you to overestimate your own competence.

Example of the overconfidence effect in the hiring process.

This bias makes recruiters or hiring managers trust their instinct when hiring someone and think they don’t need any help of for example tooling, which leads to biased and potentially unsuccessful decision-making.

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