Overconfidence Bias: 25 Examples (and some Benefits!)

overconfidence bias examples and definition, explained below

Overconfidence bias, a well-documented phenomenon in psychology, is the tendency for an individual to overestimate their own abilities or the accuracy of their judgments (Bem & De Jong, 2013).

This bias can influence many aspects of decision-making, leading to overestimations and incorrect predictions (Kassin, Privitera, & Clayton, 2022). It often occurs when people rely too much on their own intuition or past experiences without considering other relevant information (Hewstone & Stroebe, 2020).

Being aware of overconfidence bias has significant implications. It can help improve decision-making processes, bridging the gap between perception and reality (Miller, 2016). A person aware of overconfidence bias may also be able to make more accurate judgments or ‘guestimations’ and mitigate potential negative consequences of their actions in various settings, from business to education to personal life.

In this article, we will discuss overconfidence bias in depth, exploring its causes, effects, examples, and how to manage it. So, let’s delve into the realm of cognitive biases to enhance your understanding of this psychological concept!

chrisComprehension Questions: As you read through this article, I will pose comprehension and critical thinking questions to help you get the most out of this article. Teachers, if you assign this article for homework, have the students answer these questions at home, then use them as stimuli for in-class discussion.

Overconfidence Bias Definition

Overconfidence bias is when someone overestimates their knowledge, skills, or control, unaware of the potential inaccuracies in their judgment (Bem & De Jong, 2013).

This bias is prominently observed when people rate their performance as above average.

Suppose you ask a room full of people to rate themselves as drivers. It is likely that the majority of people will rank themselves as above average (Hewstone & Stroebe, 2020). Overconfidence is far too common among drivers, demonstrating a lack of humility on our part!

Given this example, you might assume that overconfidence bias purely refers to someone’s inflated view of their abilities. However, this is not entirely accurate. Overconfidence bias can also manifest when people make judgments or predictions about the outcome of an event (Reber, 2019).

An instance of this can be found in financial predictions. Traders often think they can predict the market direction better than others, leading to financial overextensions (Miller, 2016). If you’re browsing the stock market, confident that your predictions will yield high returns, this might be overconfidence bias in action.

Overconfidence bias also occurs when people underestimate risks due to their inflated confidence in their own control. You might conveniently forget the probability of getting a parking ticket when parking illegally if you’ve never received one before.

chrisComprehension Checkpoint: Can you identify an instance in your life where overconfidence bias may have influenced your decision-making?

Overconfidence Bias Examples

1. Surgeon Overconfidence: A surgeon believes she can perform a complex operation without assistance. This belief stems from her high level of confidence in her medical abilities. However, given that this is her first time performing this specific operation, it potentially jeopardizes patient safety.

2. Interview Perception: After a job interview, a candidate is overly confident about his performance. He is certain that he will receive a job offer despite having limited knowledge of his competition. Disregarding the likelihood of other equally or more qualified candidates can be an instance of overconfidence bias.

3. Sports Prediction: A sports fan consistently predicts his favorite team’s victory in every game. There is an ingrained belief that his team is superior to all others, even when playing against statistically better teams. This strong belief, despite statistical evidence to the contrary, is a representation of overconfidence bias.

chrisComprehension Checkpoint: What might be some negative consequences in someone’s life if they are too confident in their sporting predictions?

4. Student Exam Confidence: A student believes they will ace an exam based on their understanding of the studied material. Despite not revising thoroughly, the student expects to score high grades outperforming their class. Failure to consider areas of difficulty and lack of thorough preparation illustrate overconfidence bias.

5. Driving Ability: A person believes they are an excellent driver and far superior to others on the road. Despite several tickets and close calls, they still maintain they are above average. This inflated perception of their own skills reflects overconfidence bias.

6. DIY Home Improvement: A homeowner decides to undertake a complex home improvement project on their own, believing their basic skills are sufficient. Midway through the project, complexities arise and professional help is needed. Overestimation of one’s abilities in a specific field, as seen here, portrays overconfidence bias.

7. Financial Trading: A trader operating on financial markets is certain that their prediction about a stock trending upwards is accurate. Even though market predictions are uncertain by nature, the trader invests heavily. This confident risk-taking, despite the volatility of markets, is a typical showcase of overconfidence bias.

8. Entrepreneurial Ventures: An entrepreneur decides to launch a new company without conducting market research, believing his product will take the market by storm. Once launched, the product doesn’t sell as anticipated. Overconfidence in the viability of an idea without data to back up the optimism can be a symptom of overconfidence bias.

9. Climate Change Denial: Someone living in an area prone to natural disasters does not take the necessary precautions to protect their home, believing that a serious disaster will never happen. This false sense of security and disregard for probability is indicative of overconfidence bias.

10. Exam Results Forecast: A teacher predicts all her students will pass an upcoming test because they have always performed well in her class. She does not consider the complexity of the test or individual student circumstances when making this prediction. This overconfidence in predicting an outcome shows the presence of overconfidence bias.

11. Cooking Experiment: A person believes they can replicate a complex dish they saw on a cookery show without following a recipe. They overestimate their culinary skills and underperform, proving the presence of overconfidence bias.

12. Project Deadline: A project manager insists that a complex task will be completed in a week, even though it usually takes a month. They ignore standard timescales, and the deadline is missed, displaying overconfidence bias.

13. Fitness Goals: A new gym-goer sets an unrealistic goal of losing 10 kilos within a month. Their overconfidence in their fitness abilities results in disappointment, indicating overconfidence bias.

14. Start-Up Success: A new start-up founder believes his venture will be the next big thing in the tech world within a year. Despite industry data showing high rates of start-up failure, his prediction falls flat, revealing overconfidence bias.

15. Disaster Preparation: A homeowner in a hurricane-prone area believes their property would never be significantly damaged, despite statistical probabilities. When a hurricane does substantial damage, we observe overconfidence bias.

16. Learning a New Language: A student decides to learn a new language and believes they will achieve fluency in just six months. Despite the common knowledge of language acquisition taking years, the overconfident estimate constitutes overconfidence bias.

17. Artistic Ability: An individual believes they can paint a portrait as good as professional artists after completing just a beginner’s course. The final result, far from their expectation, is a case of overconfidence bias.

18. Computer Skills: A person attempts to fix a major computer issue themselves to save on repair costs. Overestimating their tech skills leads to worsening the issue, exhibiting overconfidence bias.

19. Gardening Enthusiast: A beginner gardener decides to plant demanding exotic plants, believing they will thrive under their care. The plants do not flourish despite the gardener’s confidence, showing overconfidence bias.

20. Mathematics Quiz: A contestant on a quiz show encounters a maths problem. They believe they can solve it faster than the available time, yet fail. This instance of overconfidence bias results in a missed opportunity.

21. Health Conscious Individual: A health-conscious person believes they will never fall ill due to their strict diet and regular workouts. When they fall sick like everyone else, their overconfidence in their health regimen is called into question, exhibiting overconfidence bias.

22. Stock Investing: A new investor predicts high returns on a startup firm’s stock, despite the riskiness of startup investments. When the firm does not perform well, the overly confident prediction culminates in a loss signifying overconfidence bias.

23. Job Promotion: An employee assumes they will be promoted due to their close relationship with the boss. When passed over for a deserving co-worker, their overestimation of personal relationships exhibits overconfidence bias.

24. Reading Speed: An individual believes they can read a 500-page book within a day, failing to consider concentration limits. When they cannot complete it, the reality check shows the presence of overconfidence bias.

25. Chess Match: A novice chess player challenges a seasoned veteran to a match, confident of their ability to win. When they inevitably lose, their overconfidence bias is unveiled.

Overconfidence Bias vs Dunning-Kruger Effect

While both overconfidence bias and the Dunning-Kruger effect revolve around an inflated perception of ability or knowledge, they apply to different situations and populations (Bem & De Jong, 2013).

Overconfidence bias, as we’ve discussed, is where someone overestimates their abilities or the precision of their knowledge. It’s a common psychological bias that affects judgment in various contexts – whether in driving, predicting sports outcomes, or estimating job performance (Reber, 2019).

The Dunning-Kruger effect, however, takes a slightly narrower focus. Named after psychologists David Dunning and Justin Kruger, it refers to an interesting paradox where individuals with low ability at a task overestimate their ability at that task. Contrarily, skilled individuals underplay their competence, believing tasks to be easier than they are for others (Hewstone & Stroebe, 2020).

Here’s a real-world example. Let’s consider two individuals learning the game of chess. One player, experienced and accomplished, knows there is still much to learn. This individual demonstrates humility about their abilities—consistent with the Dunning-Kruger effect. On the other hand, a novice player may believe they have a superior understanding of the game and can make better moves than others, illustrating overconfidence bias (Miller, 2016).

In the professional world, it could be the overconfident new employee thinking they will outperform a veteran staff, reflecting overconfidence bias. Contrastingly, an experienced but self-effacing employee undervaluing their expertise while overestimating that of others would signify the Dunning-Kruger effect (Crisp & Turner, 2020).

chrisComprehension Checkpoint: Pause for a moment to try to come up with two situations that would be defined as the Dunning-Kruger effect and two that might fit more comfortably under the broader overconfidence bias definition.

Despite the slight differences, it’s important to remember that overconfidence bias and the Dunning-Kruger effect are not mutually exclusive. They both contribute to false confidence patterns that can distort decision-making and performance assessments.

Overconfidence BiasDunning-Kruger Effect
Individuals overestimate their abilities and knowledgeLess competent individuals tend to overestimate their abilities, while competent ones doubt theirs
Applies across all skill levelsTypically seen in individuals with lower ability
Affects a wide range of tasks and contextsMostly seen in complex tasks where experience plays a vital role
Individuals are overconfident about the accuracy of their predictionsLess competent individuals fail to recognize their lack of skill

Pros and Cons of Overconfidence Bias

While overconfidence bias is generally seen as a cognitive distortion, it can also have some unexpected benefits (Bem & De Jong, 2013).

Typically, overconfidence bias can lead to negative outcomes by encouraging poor decision-making (Reber, 2019). For example, someone overconfident in their driving abilities might ignore the risks of texting while driving, thereby increasing the chances of an accident. It can also lead to the underestimation of task complexity, as with a student overconfidently predicting that they will finish a project in less time than it actually takes (Miller, 2016).

Overconfidence bias can distort self-perception, fostering an inflated view of personal abilities or the correctness of one’s beliefs (Reber, 2019). This distortion can hinder learning as individuals may refuse to acknowledge their mistakes or obstacles to understanding. Overconfidence can also trigger conflicts with others when overconfident individuals stubbornly assert their views, dismissing others’ contributions (Crisp & Turner, 2020).

However, overconfidence bias does have some potential advantages. Notably, it can boost self-esteem and promote a positive mindset, which are both linked to mental well-being and resilience (Kassin, Privitera, & Clayton, 2022). Overconfidence can also act as a self-fulfilling prophecy—the confidence might actually enhance performance in some cases, such as in public speaking or leadership roles.

Moreover, a certain level of overconfidence can increase persistence or determination in the face of challenging tasks (Hewstone & Stroebe, 2020). Overconfident individuals may be more likely to take risks and engage in behavior that could potentially result in high rewards.

Pros of Overconfidence BiasCons of Overconfidence Bias
Promotes a positive mindsetCan degrade decision-making quality
Boosts self-esteemLeads to underestimation of task complexity
Can act as a self-fulfilling prophecy enhancing performanceDistorts self-perception, hindering learning
Leads to persistence in challenging tasksCan trigger conflict due to dismissal of other’s views
Encourages risk-taking behavior with high reward potentialCan encourage reckless behavior, increasing likelihood of failure
chrisComprehension Checkpoint: Can you think of additional circumstances in which overconfidence bias might lead to positive outcomes? Similarly, try to identify 3 possible additional negative otucomes.


Overconfidence bias is a potent psychological phenomenon that can significantly impact our decisions, tasks and how we perceive the world. While overconfidence bias can distort our judgment and lead to miscalculations, it can also act as a valuable tool, contributing to resilience and the willingness to take risks. Equipped with this critical understanding, you can effectively manage overconfidence bias in your personal and professional life. By being aware of this bias, you can work towards making more informed and rational decisions, enhancing your ability to achieve your goals.


Bem, S., & De Jong, H. L. (2013). Theoretical issues in psychology: An introduction. London: Sage.

Crisp, R. J. and Turner, R. N. (2020). Essential Social Psychology. London: Sage.

Hewstone, M. and Stroebe, W. (2020). An Introduction to Social Psychology. New York: Wiley.

Kassin, S., Privitera, J. and Clayton, K. (2022). Essentials of Psychology. New York: Sage.

Miller, H. (2016). The SAGE Encyclopedia of Theory in Psychology. New York: Sage.

Reber, R. (2019). Psychology: The Basics. London: Taylor & Francis.

Website | + posts

Dr. Chris Drew is the founder of the Helpful Professor. He holds a PhD in education and has published over 20 articles in scholarly journals. He is the former editor of the Journal of Learning Development in Higher Education. [Image Descriptor: Photo of Chris]

Leave a Comment

Your email address will not be published. Required fields are marked *