![Overconfidence as a Cognitive Bias and its Implications for Insurance Industry](/api/image/getbookcoverimage?id=document_cover-page-image_842947.jpg)
Overconfidence as a Cognitive Bias and its Implications for Insurance Industry
The behavior of individuals is influenced by many biases that cause their deviation from the rationality. One of them, discussed extensively in the financial industry is cognitive bias - overconfidence. It is a firmly established feature of an individual behavior in the psychological point of view. On the other hand in the economics it is extensively explained by inefficient market outcomes connected to a biased sense of self-confidence. In short, the bias is shown for numerous real-world situations and cause changes in consumers’ behavior.
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