ECONOMICS

Detailed explanation-1: -Hindsight bias is a psychological phenomenon in which one becomes convinced they accurately predicted an event before it occurred. It causes overconfidence in one’s ability to predict other future events and may lead to unnecessary risks. Hindsight bias can negatively affect decision-making.

Detailed explanation-2: -It also lends itself to a phenomenon known as the hindsight bias-the tendency for people with knowledge of the actual event to believe falsely that they would have predicted the correct outcome.

Detailed explanation-3: -Biasing: Biasing is a psychological concept describing a mechanism through which people distinguish between different events.

Detailed explanation-4: -Hindsight bias is the tendency to perceive past events as more predictable than they actually were. Due to this, people think their judgment is better than it is.

Detailed explanation-5: -In psychology, the availability bias is the human tendency to rely on information that comes readily to mind when evaluating situations or making decisions.