Winter 1992
Volume 33, Issue # 2

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Managing Overconfidence

  • Read Time: 31 min 

Good decision making should include an understanding of the limits of our knowledge — or metaknowledge. Because overconfidence is deeply rooted in our culture, and because metaknowledge is not recognized, rewarded or formally taught, overconfidence remains a hidden flaw in managerial decision making. This article examines the costs, causes and remedies for overconfidence, while acknowledging that overconfidence can still serve a purpose during decision implementation.