The management board of a construction company decides to invest and expand the business to real estate.However,Adam,one of the board members,is skeptical of this idea because he anticipates some trouble.He convinces the other board members to abandon this plan.Adam is proved right when the country's real estate business collapses.In the context of self-serving bias,this scenario exemplifies a phenomenon called:

Question

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Adam's skepticism and anticipation of trouble in the real estate market is an example of defensive pessimism. Defensive pessimism is a cognitive strategy where a person prepares for the worst-case scenario, even when there is evidence to suggest that the situation may be less dire. This is different from unrealistic optimism, which is a belief that one will experience more positive outcomes than is realistically possible. The planning fallacy is a tendency to underestimate the time and resources required to complete a task or project. Collective narcissism is a belief in the superiority of one's group over others, and is not applicable in this scenario.

The Management Board of a Construction Company Decides to Invest