What is the effect of cognitive biases on decision-making?
Cognitive biases can significantly impact decision-making by distorting our perception of reality and leading us to make irrational choices. For example, the Dunning-Kruger effect causes individuals with low ability in a domain to overestimate their competence, while the curse of knowledge makes it difficult for experts to understand the perspective of novices. Recognizing these biases is crucial for improving decision-making.
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