Curse of Knowledge

jargon

curse of knowledge by Igor Kopelnitsky

The curse of knowledge is a cognitive bias that leads better-informed parties to find it extremely difficult to think about problems from the perspective of lesser-informed parties. It is related to public policy engineer Baruch Fischhoff’s work on the hindsight bias (the knew-it-all-along effect). In economics the bias is studied to understand why the assumption that better informed agents can accurately anticipate the judgments of lesser informed agents is not inherently true, as well as to support the finding that sales agents who are better informed about their products may, in fact, be at a disadvantage against other, less-informed agents. It is believed that better informed agents fail to ignore the privileged knowledge that they possess, thus ‘cursed’ and unable to sell their products at a value that more naïve agents would deem acceptable.

In one experiment, one group of subjects ‘tapped’ a well-known song on a table while another listened and tried to identify the song. Some ‘tappers’ described a rich sensory experience in their minds as they tapped out the melody. Tappers on average estimated that 50% of listeners would identify the specific tune; in reality only 2.5% of listeners could. Related to this finding is the phenomenon experienced by players of charades: The actor may find it frustratingly hard to believe that his or her teammates keep failing to guess the secret phrase, known only to the actor, conveyed by pantomime.

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