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Optimism Bias/Effect

Definition 1

Finding that choice options with positive, higher utility outcomes will be perceived as more likely to occur than those with negative consequences.

Source: Behavioral Science Lab, 2017

Definition 2

People tend to overestimate the probability of positive events and underestimate the probability of negative events happening to them in the future (Sharot, 2011). For example, we may underestimate our risk of getting cancer and overestimate our future success on the job market. A number of factors can explain unrealistic optimism, including perceived control and being in a good mood (Helweg-Larsen & Shepperd, 2001). (See also overconfidence.)

Source: Behavioral Economics

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