Chapter 7 | Self-Attribution Bias Flashcards
Self-attribution Bias other term
Self-serving Bias
Individuals faced with positive outcome following a decision would view that outcome as a REFLECTION of their ability and skill. However, when faced with a negative outcome, they would ascribe it to bad luck or to someone else’s intervention.
Self-attribution Bias
If someone receives a promotion at work or gets an excellent grade on a project, they might attribute it to their hard work, intelligence, or skills.
Self-attribution
If they fail a project or receive criticism, they may attribute it to factors such as a difficult task, lack of resources, or even blame others for their failure.
External attribution
In many cases, this cognitive bias allows people to protect their self-esteem. By attributing positive events to personal characteristics, people get a boost in confidence. By blaming outside forces for failures, people protect their self-esteem.
Self-attribution Bias
Represents people’s PROPENSITY to claim IRRATIONAL DEGREE of credit for their success.
Self-enhancing Bias
The tendency to describe aspect oneself more positively than a normative criterion would predict.
Individuals take all the credit for their success while giving little or no credit at all to individuals or external factors
Self-enhancing Bias
It represents the COROLLARY EFFECTS the IRRATIONAL DENIAL of responsibility for failures.
Blaming others.
Self-protecting Bias
Self-enhancing Bias + Self-protecting Bias
Self-attribution Bias
Implications for Investors
People who aren’t able to perceive mistakes, they’ve made are, consequently unable to learn from those mistakes.
Investors who disproportionately credit themselves when desirable outcomes do arise can become detrimentally overconfident in their own savvy.
What to do to reduce negative impacts of the self attribution bias?
Always be humble.
Post analyze your investment.
John Wooden
You are not a failure unless blaming others for your mistake.
