DUNNING-KRUGER EFFECT

 

Why Incompetent People Think They're Experts

 

People with little knowledge overestimate their competence, while experts underestimate theirs.

 

WHY IT HAPPENS:

 

Lack of knowledge prevents you from recognizing what you don't know

 

REAL-LIFE EXAMPLES:

 

New gym-goers advise experienced lifters •

 

Experts doubt themselves.

 

Emotionally

 

unaware people think they're great partners

 

Confidence is highest when knowledge is lowest

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THE HALO EFFECT

 

 

One Good Trait Blinds You to Everything Else

 

If someone excels in one area, you assume they're excellent in all areas.

 

REAL EXAMPLES:

 

Attractive people perceived as smarter & kinder

 5 Biases

Successful entrepreneurs assumed to be great parents. One red flag dismissed because they're charming

 

IN RELATIONSHIPS:

 

The halo effect is especially dangerous in romantic relationships

 

One good quality doesn't erase other flaws

----

 

SUNK COST FALLACY

 

Why You Stay in Bad Situations

 

You continue investing in something because you've already invested so much (time, money, energy).

 

IN RELATIONSHIPS:

 

"I've been with them 5 years, I can't leave now"

 

IN CAREER:

 

Staying in a job because you've invested so much time

 

REAL IMPAСТ:

 

Keep you trapped Prevent forward movement

 

Cost years of happiness

 

Past investment shouldn't determine future decisions-only future potential matters

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CONFIRMATION BIAS

 

The Bias: You Only See What You Want to See

 

You seek information that confirms your existing beliefs while ignoring contradictory evidence.

 

REAL EXAMPLE:

 

If you believe someone is untrustworthy, you'll notice their mistakes but ignore their kindness.

 

REAL-LIFE IMPACT:

 

Creates echo chambers Damages relationships. Limits personal growth

 

Do you do this?

 

----

 

ANCHORING BIAS

 

Why the First Number You Hear Sticks

 

The first piece of information you receive The first piece of information you receive becomes a reference point, influencing all future judgments.

 

REAL EXAMPLE:

 If someone mentions ₹75,000 as a price, lower offers feel reasonable (even if they're still high).

 

IN RELATIONSHIPS:

 

First impressions anchor how you perceive someone forever

 

Be aware of first anchors-they're powerful

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