Dunning-Kruger effect and Lease: Difference between pages

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imported>Doug Williamson
(Expand to contextualise cognitive biases.)
 
imported>Doug Williamson
(Categorise page and amend links narratives and ordering.)
 
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''Behavioural economics''.
A contract whereby the owner of an asset (the lessor) offers rights to use the asset to another party (the lessee) for a certain period.
In return the lessee makes payments of pre-determined amounts to the lessor.


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 the Dunning-Kruger effect is the reverse of the [[Impostor syndrome]].
== See also ==
 
* [[Assets]]
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.
* [[Contract]]
 
* [[Finance lease]]
The Dunning-Kruger effect can however be 'cured', with even a relatively moderate amount of appropriate training.
* [[Lessee]]
 
* [[Lessor]]
 
* [[Operating lease]]
Such tendencies to assess evidence incorrectly are known collectively as 'cognitive biases'. Affinity bias is another example.
* [[Sale and leaseback]]
 
 
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 ==
==Other links==
* [[Affinity bias]]
*[http://www.treasurers.org/node/5745 Leasing, Will Spinney, ACT 2010]
* [[Behavioural economics]]
*[http://www.treasurers.org/node/8924 Students: A lesson on leases, The Treasurer, April 2013]
* [[Emotional intelligence]]
* [[Impostor syndrome]]


[[Category:Working_effectively_with_others]]
[[Category:Capital_Markets_and_Funding]]
[[Category:Corporate_finance]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]

Revision as of 06:06, 4 October 2013

A contract whereby the owner of an asset (the lessor) offers rights to use the asset to another party (the lessee) for a certain period.

In return the lessee makes payments of pre-determined amounts to the lessor.


See also


Other links

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