Isn’t there an equally well-known bias toward thinking we’ll react differently to future events (or behave differently) than most people? That is, we observe that most people don’t become happier when they become rich, but we convince ourselves that we’re “different” enough that we nonetheless will? I think Dan Gilbert wrote pretty extensively on this in of those recent “happiness studies” books. Anyway, it seems like there’s an obvious tension between the two tendencies.
That sounds like either the optimism bias or the positive outcome bias. They are related, but I think the optimism bias fits best.
People tend to over-estimate their chances of success, and under-estimate their chances of failure. If 90% percent of people eventually go broke after winning the lottery, chances are more than half of them were certain it wouldn’t happen to them.
The UK government has special procedures in place to help avoid project failures due to the optimism bias.
Isn’t there an equally well-known bias toward thinking we’ll react differently to future events (or behave differently) than most people? That is, we observe that most people don’t become happier when they become rich, but we convince ourselves that we’re “different” enough that we nonetheless will? I think Dan Gilbert wrote pretty extensively on this in of those recent “happiness studies” books. Anyway, it seems like there’s an obvious tension between the two tendencies.
That sounds like either the optimism bias or the positive outcome bias. They are related, but I think the optimism bias fits best.
People tend to over-estimate their chances of success, and under-estimate their chances of failure. If 90% percent of people eventually go broke after winning the lottery, chances are more than half of them were certain it wouldn’t happen to them.
The UK government has special procedures in place to help avoid project failures due to the optimism bias.