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In anonymous surveys, on average people rate themselves as "above average" with regard to characteristics such as intelligence, perceptiveness, and driving ability. According to behavioral economics, this contradictory result would most likely be caused by theA) overconfidence effect.B) self-serving bias. C) confirmation bias. D) hindsight bias

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Answer:

A. Overconfidence effect

Explanation:

Overconfidence effect is a kind of bias whereby individual's subjective confidence in their own abilities is greater than the objective or actual performance accuracy of those abilities. During surveys, respondents usually have this kind of bias. An example is the one stated in the question whereby average people tend to fill that they are "above average" on certain features like intelligence and perceptiveness. It is a common bias as individuals usually assume that they are better than their real ability by overestimating those abilities inherently.

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