Overconfidence and Endowment effects

Another excellent lecture today, as people were sitting on the floor to try to grasp the sweet words that trickled from professor Wahlunds tender mouth. The lessons learned were many. Here's the summary.

Overconfidence:

• Small probabilities
• Base rate bias
• More credible statement or correlation sounds
• The more information we have, the more confident we are, even if the information is irrelevant or lessens the probabilityof the event.
  
• The more people or media who asserts
• Men more than women

Endowment effect

1. Feel affection
2. Care about sunk costs
3. Status quo bias
4. Debt aversion
5. Trend illusion
6. Confirmation bias
   

Professor Barry Schwartz adresses the paradox of choice below in a famous TED talk: