OVERCONFIDENCE

B Y S U RYA A N S H M E RT I A
W H AT I S O V E R C O N F I D E N C E ?
• A cognitive bias where individuals have an inflated sense of their own abilities, knowledge, or
predictions.
• Often leads to overestimating one's skills or underestimating risks.
TYPES OF OVERCONFIDENCE
1. Overestimation of Abilities
• Believing one is smarter, more skilled, or more capable than they actually are.
2. Overplacement
• Believing one ranks higher than others in terms of abilities or performance.
3. Overprecision
• Having too much faith in the accuracy of one's beliefs or predictions.
4. Overoptimism
• Being excessively hopeful about the future, often leading to risky decisions.
5. Overconfident Social Predictions
• Overestimating one's ability to read others or predict their behavior.
CAUSES OF OVERCONFIDENCE
1. Cognitive Dissonance
• The discomfort of holding conflicting beliefs can lead to overconfidence as a way to reduce tension.

2. Confirmation Bias
• Seeking information that confirms existing beliefs while ignoring contradictory evidence.

3. Illusion of Control
• Believing we have more control over outcomes than we actually do.

4. Dunning-Kruger Effect
• Incompetent individuals often overestimate their abilities due to a lack of self-awareness.

5. Social Influence
• Pressure to conform to group opinions or expectations can lead to overconfidence.
THE DOWNSIDE OF
OVERCONFIDENCE
Overconfident people tend to make poor decisions and are more prone to:
• Financial losses
• Failed relationships
• Inadequate planning
• Missed opportunities
RECOGNIZING AND MANAGING
OVERCONFIDENCE
1. Self-awareness
• Acknowledge your own biases and limitations.

2. Seek feedback
• Encourage others to provide constructive criticism.

3. Consider alternatives
• Explore different perspectives and scenarios.

4. Keep a record
• Document your decisions and review them over time.

5. Embrace uncertainty
• Accept that some situations are inherently unpredictable.
B E N E F I T S O F H E A LT H Y
CONFIDENCE
• Differentiate between healthy confidence and overconfidence.
• Healthy confidence is based on a realistic self-assessment and leads to better decision-making.
THANK YOU
NO MORE QUESTIONS