The best option illusion in self and social assessment

Abstract

I discuss the best option illusion, the tendency for people to select what they believe is the most reasonable option when solving problems or deciding on a course of action. Such a strategy is straightforward, sensible and difficult to quibble with, but occasionally the seemingly best option turns out to be anything but—leading to systematic errors and problems that must be identified, addressed, and managed. Specifically, people are more likely to be surprised in a negative direction than a positive one, give themselves positive credit for wrong answers, and stick to their answers far more than they should after exposure to contrary evidence. In self-judgment, the illusion leads to the Dunning-Kruger effect, in which people fail to recognize their own incompetence. In social judgment, it leads to the Cassandra quandary, in which people fail to identify when another person’s competence exceeds their own.

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