When Decision Makers Tend to Think They Know More Than

question 4

Multiple Choice

When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance, they are exhibiting ________.

• A) self-serving bias
• B) immediate gratification bias
• C) the anchoring effect
• D) overconfidence bias

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Definitions:

Separating Equilibrium

A situation in a game or market where different types of participants (often with private information) are sorted into different groups based on their actions or choices.

Klutzes

Informal for clumsy people who are often prone to accidents or mishandling objects.

Dull Lectures

Boring or unenthusiastic presentations or talks, often resulting in little interest or engagement from the audience.

Marginal Cost

The rise in expense associated with the production of an extra good or service unit.