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
Hiring decisions based on structured interview narratives. Investment theses built on internally consistent but cherry-picked data. Medical diagnoses where symptoms form a neat pattern. Sports drafts where highlight reels create false certainty.
Failure mode
Confidence tracks coherence rather than evidence quality. Decision-makers reject superior statistical models because the model's output "doesn't feel right" compared to their intuitive narrative. Interview confidence bears near-zero correlation with actual job performance.
Countermeasure
Separate the question "Does this story make sense?" from "Does this story predict outcomes?" Demand out-of-sample validation. Use base rates and actuarial methods alongside narrative judgment.
Related concepts
Also connected in the mapThe Narrative Fallacy·Confirmation Bias·The Overconfidence Effect·Subjective Validation·Gibson’s Law·False Precision
Origin
Discovered by, 1973Daniel KahnemanPsychology · Nobel laureate · 1934–2024Proved judgement runs on fast, biased heuristics - the foundation the whole field stands on.See in Origins →
Discovered byAmos TverskyCognitive psychology · 1937–1996Kahneman's co-author; formalised how people misjudge probability and risk.See in Origins →Read next
Entry #27 of 631 in The Lexicon · see the full Lexicon