The “Overconfidence Bias”

The guides of the Everest expeditions often boasted that they could guide anyone with average fitness to the top of Mt. Everest. They were so confident that they ignored the 2:00 return to base rule and paid the ultimate price.

In a poll taken of teen drivers, 93% indicated that they were better than average drivers.

Statistically, only 50% can be better than average. A similar poll asked start-up entrepreneurs how likely they are to be successful. Ninety percent said their business would succeed. The real figures are more like 50%. I have seen many a retail entrepreneur who had a successful launch with their first store, and then figured they could replicate the same business model and open a second location, only to discover it is not that easy and lose both stores.

Are you guilty of an overconfidence bias?

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3 thoughts on “The “Overconfidence Bias””

  1. Pingback: How To Choose Between Wealth and Power, Understanding the Founder's Dilemma - How to Advice for your Side-Hustle or Small Business

  2. Pingback: How to Choose Between Wealth and Power: Understanding the Founder’s Dilemma – Wealth Newsletter Daily

  3. Pingback: How to Choose Between Wealth and Power: Understanding the Founder’s Dilemma – Darwin Wealth Creation

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