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 traps
Also connected in the mapThe Narrative Fallacy·5 more, locked
Read next
Entry #27 of 631 in The Lexicon · see the full Lexicon