There’s a cognitive bias, widely recognised in the field of social psychology, called illusory superiority. In fact, it’s been called many things — leniency error, the superiority bias, and the primus inter pares effect, for example — but it’s perhaps most popularly known as the Lake Wobegon effect, named after the fictional town created by the author Garrison Keiller.
In short, it refers to our natural tendency to overestimate our own capabilities. In Lake Wobegon, “all the women are strong, all the men are good-looking, and all the children are above average”. The truth, of course, is that we can’t all be above average, but that still doesn’t stop us thinking, for example, that we’re better at driving, funnier or smarter than other people.
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ROBIN POWELL is the founder and editor of The Evidence-Based Investor. A freelance journalist, he runs Regis Media, a specialist content marketing consultancy for financial advice firms around the world. You can follow him on Twitter and on LinkedIn.
The Evidence-Based Investor is produced by Regis Media, a boutique provider of content and social media management to financial advice firms around the world. For more information, visit our website and YouTube channel, or email Sam Willet or Christina Waider.
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Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
