mind & bodyWikipedia

After an outcome is known, people feel it was predictable all along, which makes them overconfident

the gist

Hindsight bias is the tendency to see past events as more predictable than they really were. Once we know how something turned out, we tend to believe we could have foreseen it, and we forget what we actually thought beforehand. It is also called the knew-it-all-along effect or creeping determinism. The bias can distort memories of what people knew or expected before an event. It is a major source of overconfidence in predicting future outcomes, because we judge our past foresight too kindly. It appears in historians' accounts of battles, in doctors' recollections of clinical trials, and in courts, where people often assign blame for accidents as if they had been obviously preventable.

how it works

After learning an outcome, the mind rebuilds its earlier beliefs around that outcome, so the result appears to have been the natural conclusion. This quietly overwrites the memory of uncertainty, making the past seem more predictable than it was.

so what

Hindsight bias matters for investors, doctors, judges and historians, because it makes past decisions look more reasonable than they were. It can lead people to blame individuals for accidents that were hard to foresee, and to overrate their own ability to predict what comes next.

fun fact

Psychologist Baruch Fischhoff studied the effect in 1975 by asking people to estimate the probability of outcomes before and after learning the results of historical events.

more on this

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Illustrative photo · AndréWilke, CC0, via Wikimedia Commons