This is a Lexicon entry: the mechanism, when it shows up, and the countermeasure. The full correction, with real-world cases and the audit prompt, hasn't been written yet.
When it shows up
Test-takers overconfident on hard questions. Experts underconfident on routine diagnoses. Startup founders overconfident on hard pivots, underconfident on easy operational improvements.
Failure mode
Resources are misallocated: too much confidence invested in uncertain bets, not enough in near-certain wins. Planning for hard tasks underestimates risk; planning for easy tasks overestimates it.
Countermeasure
When a task feels hard: widen confidence intervals. When a task feels easy: resist the urge to hedge. Use reference class forecasting to anchor difficulty assessment externally.
Related concepts
Also connected in the mapThe Dunning-Kruger Effect·The Overconfidence Effect·Calibration
Origin
Discovered by, 1977Sarah LichtensteinDecision research · 1933–2023Co-discovered preference reversal and overconfidence in human calibration.See in Origins →
Discovered byBaruch FischhoffDecision science · CMU · b. 1946Discovered hindsight bias - the knew-it-all-along rewrite of the past.See in Origins →Also revealed
Entry #25 of 631 in The Lexicon · see the full Lexicon