The Money Blog

It's all Money, Mindset and Marketing! Stay Tuned.

What Is the Dunning-Kruger Effect?

Aug 08, 2024
Dunning Kruger Effect

The Dunning-Kruger effect is a cognitive bias in which people with low ability in a subject overestimate their competence, while those with high ability tend to underestimate their competence[5]. This phenomenon was first discovered and written about in 1999 by researchers David Dunning and Justin Kruger at Cornell University[3]. The effect can impact people of all ages and professions, including college students, drivers, medical technicians, software engineers, and teachers[4].

The Dunning-Kruger effect can have major effects in a multitude of domains. By the rules of the Dunning-Kruger effect, we accept information and advice from those who will speak first and loudest before those whose words will hold the most weight[3]. This can cause us to listen to confident people before reputable people, even if the confident person is wildly ignorant and grossly overestimating their own performance[3].

To avoid falling victim to the Dunning-Kruger effect, it is important to recognize our own blind spots and adjust our self-perceptions[4]. This requires taking a step back to realize that our own self-assessments can be biased and sometimes incorrect. Seeking feedback from others and consulting reputable sources can also help us avoid overestimating our own abilities[4].

In conclusion, the Dunning-Kruger effect is a cognitive bias that influences everyone’s perception of their own abilities. It can impact people of all ages and professions, and can have major effects in a multitude of domains. To avoid falling victim to this bias, it is important to recognize our own blind spots, seek feedback from others, and consult reputable sources.

Citations:
[1] https://www.linkedin.com/pulse/b-side-dunning-kruger-effect-also-how-write-good-blog-andy-havens
[2] https://www.tanzerina.com/blog/read-below-this-post-at-your-own-risk-and-the-dunning-kruger-effect
[3] https://thedecisionlab.com/biases/dunning-kruger-effect
[4] https://www.elegantthemes.com/blog/business/dunning-kruger-effect
[5] https://blog.hubspot.com/marketing/dunning-kruger

GOOD MORNING, MONEY!

Want HelpfulĀ Money, Mindset and MarketingĀ Tips Every Day?

Subscribe to our Podcast. It's 1 minute of quick tips every day.

I WANT TO LISTEN TO IT NOW!