Optimism-biased

Describing a cognitive bias where individuals tend to overestimate the likelihood of positive events happening to them while underestimating the likelihood of negative events. This bias leads to an inflated sense of personal invulnerability and a belief in a brighter personal future than is realistically warranted. It affects various aspects of life, from financial decisions to health choices, impacting how risks and rewards are perceived and judged. It is often deeply rooted in a person’s belief system and plays a crucial role in human motivation and goal-seeking, often making people more inclined to pursue endeavours despite their known dangers. The degree of optimism bias can fluctuate according to the type of event and individual differences.

Optimism-biased meaning with examples

• Sarah, showing an optimism-biased perspective, was certain her new business venture would succeed, ignoring the market research indicating high failure rates for similar startups. This led her to overestimate projected profits and underestimate initial investment costs, ultimately contributing to a risky financial plan.
• John, an optimism-biased individual, consistently downplayed the risks of smoking, believing he wouldn't suffer the same negative health outcomes as others. This led him to dismiss public health warnings and ultimately prioritize immediate gratification over potential long-term consequences, endangering his health.
• Despite warnings about dangerous driving conditions, Mark, exhibiting an optimism-biased outlook, insisted he could arrive safely at his destination ahead of a dangerous storm. He brushed off the increasing hazards, believing his driving skills and experience made him immune to potential accidents.
• Even with a family history of heart disease, Lisa, experiencing an optimism-biased view, felt confident that she would remain healthy without significant lifestyle changes. This contributed to her neglecting regular checkups and ignoring dietary advice, thinking the disease would not affect her.