How does overconfidence affect decision-making? How does overconfidence hurt businesses? In his book How the Mighty Fall, Jim Collins claims that one of the reasons why companies fail is because managers or workers are overconfident that the company can only go uphill. Companies should always be prepared for the worst, and believing otherwise will only hurt them. Let’s look at how overconfidence bias in decision-making hurts companies.
Overconfidence Bias in Decision-Making: A Company’s Downfall
