Which of the following best illustrates the concept of hindsight bias?
A) You have just been given inside information about a new company and decide to buy stock in a different company.
B) Even though you had stated before a game that you thought your team would lose, after they win the game, you say that you knew that your team was going to win.
C) When trying to choose between two kinds of cars, you choose the kind that you have seen in a commercial on television.
D) After buying an expensive item, you feel worse than before you bought it.

Question

Quizplus · Accepted Answer

Hindsight bias refers to the tendency to believe, after an event has occurred, that one would have predicted or expected the outcome beforehand. Option B best illustrates this concept as the person changes their prediction after the game has already been won, despite having previously stated a different opinion. Option A relates to insider trading, Option C relates to the influence of advertisements on decision making, and Option D describes post-purchase dissonance.

Which of the Following Best Illustrates the Concept of Hindsight