We explore optimism bias, a cognitive bias where individuals overestimate the likelihood of positive events and underestimate negative ones. Several studies examine this bias in different contexts: financial decision-making in insurance markets, prediction of future adverse life events influenced by dopamine levels, cost overruns in large-scale bridge projects, risk perception during the COVID-19 pandemic, and forecasting success in American Football. Researchers analyse the bias's prevalence, influencing factors (age, health, etc.), and potential interventions to mitigate its negative consequences, such as improved risk assessment and safer driving practices.
