In this case, Overestimation can cause inconvenience.
An Overestimation of threat(e.g. of being single, or of being unemployed)?
This Overestimation of the final bid for an entity is actually the cause of“winner's curse”.
He opined,“Does the new series represent a fuller description of the manufacturing value added,
or is it an Overestimation?”?
From such an Overestimation, it is now truly possible to go
only in one direction- in the direction of decline.
This Overestimation is associated both with making erroneous conclusions
and unfortunate choices and with inability to recognize and correct their mistakes(e.g., Kruger & Dunning, 1999).
Rather than scaring them straight, these campaigns feed into such Overestimation and actually push teens toward the same bad
behaviors that programs like D.A.R.E. try to avert.
In fact, each point of Overestimation on a 1 to 10 scale was linked to a 9.5
percent increase in disability and a 10 percent increase in death.
It is generally being seen that the students feel disappointed after the declaration of results,
the main reason behind this emotional breakdown is their Overestimation from the outcome.
In ERP, habituation is hypothesized to work by shifting the overvalued
cognitive belief systems which a patient has(e.g., the Overestimation of a threat when the obsession is regarding
accidentally harming someone nearby) and reducing the link between the belief and the threat appraisal.