Credit default swap and Dunning-Kruger effect: Difference between pages
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''Behavioural economics''. | |||
The Dunning-Kruger effect is generally reported as an irrational tendency among certain incompetent individuals systematically to ''overestimate'' their true level of competence. | |||
In simple terms, this aspect of Dunning-Kruger effect is the reverse of the [[Impostor syndrome]]. | |||
A possible explanation for the Dunning-Kruger effect is that the skills we need to assess our level of competence in a given task correctly, are exactly the same skills that we need to perform the task itself. Those lacking in the task 'performance' skills would then, necessarily, lack the 'competence assessment' skills as well. | |||
The Dunning-Kruger effect can however be 'cured', with even a relative moderate amount of appropriate training. | |||
Such tendencies to assess evidence incorrectly are known collectively as 'cognitive bias'. | |||
The Dunning-Kruger effect is strictly defined more broadly, to ''include'' the Impostor syndrome (underconfidence of skilled people) as well as the effect described above (overconfidence of the unskilled). | |||
== | == See also == | ||
[ | * [[Impostor syndrome]] | ||
* [[Behavioural economics]] | |||
[[Category: | [[Category:Corporate_Strategy]] | ||
[[Category: | [[Category:Business_and_Operational_Risk]] | ||
[[Category: | [[Category:Managing_Risk]] | ||
Revision as of 11:28, 21 July 2014
Behavioural economics.
The Dunning-Kruger effect is generally reported as an irrational tendency among certain incompetent individuals systematically to overestimate their true level of competence.
In simple terms, this aspect of Dunning-Kruger effect is the reverse of the Impostor syndrome.
A possible explanation for the Dunning-Kruger effect is that the skills we need to assess our level of competence in a given task correctly, are exactly the same skills that we need to perform the task itself. Those lacking in the task 'performance' skills would then, necessarily, lack the 'competence assessment' skills as well.
The Dunning-Kruger effect can however be 'cured', with even a relative moderate amount of appropriate training.
Such tendencies to assess evidence incorrectly are known collectively as 'cognitive bias'.
The Dunning-Kruger effect is strictly defined more broadly, to include the Impostor syndrome (underconfidence of skilled people) as well as the effect described above (overconfidence of the unskilled).
