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be forced out by Parliament. Time magazine later identified him as one of the twenty-five people to blame for the financial crisis worldwide. Nevertheless, in 2016 Oddsson announced his candidacy for the presidency of Iceland: “My experience and knowledge, which is considerable, could go well with this office.”

In theory, confidence and competence go hand in hand. In practice, they often diverge. You can see it when people rate their own leadership skills and are also evaluated by their colleagues, supervisors, or subordinates. In a meta-analysis of ninety-five studies involving over a hundred thousand people, women typically underestimated their leadership skills, while men overestimated their skills.

You’ve probably met some football fans who are convinced they know more than the coaches on the sidelines. That’s the armchair quarterback syndrome, where confidence exceeds competence. Even after calling financial plays that destroyed an economy, Davíð Oddsson still refused to acknowledge that he wasn’t qualified to coach—let alone quarterback. He was blind to his weaknesses.

Jason Adam Katzenstein/The New Yorker Collection/The Cartoon Bank; © Condé Nast

The opposite of armchair quarterback syndrome is impostor syndrome, where competence exceeds confidence. Think of the people you know who believe that they don’t deserve their success. They’re genuinely unaware of just how intelligent, creative, or charming they are, and no matter how hard you try, you can’t get them to rethink their views. Even after an online petition proved that many others had confidence in her, Halla Tómasdóttir still wasn’t convinced she was qualified to lead her country. She was blind to her strengths.

Although they had opposite blind spots, being on the extremes of confidence left both candidates reluctant to rethink their plans. The ideal level of confidence probably lies somewhere between being an armchair quarterback and an impostor. How do we find that sweet spot?

THE IGNORANCE OF ARROGANCE

One of my favorite accolades is a satirical award for research that’s as entertaining as it is enlightening. It’s called the Ig™ Nobel Prize, and it’s handed out by actual Nobel laureates. One autumn in college, I raced to the campus theater to watch the ceremony along with over a thousand fellow nerds. The winners included a pair of physicists who created a magnetic field to levitate a live frog, a trio of chemists who discovered that the biochemistry of romantic love has something in common with obsessive-compulsive disorder, and a computer scientist who invented PawSense—software that detects cat paws on a keyboard and makes an annoying noise to deter them. Unclear whether it also worked with dogs.

Several of the awards made me laugh, but the honorees who made me think the most were two psychologists, David Dunning and Justin Kruger. They had just published a “modest report” on skill and confidence that would soon become famous. They found that in many situations, those who can’t . . . don’t know they can’t. According to what’s now known as the Dunning-Kruger effect, it’s when we lack competence that we’re most likely to be brimming with overconfidence.

In the original Dunning-Kruger studies, people who scored the lowest on tests of logical reasoning, grammar, and sense of humor had the most inflated opinions of their skills. On average, they believed they did better than 62 percent of their peers, but in reality outperformed only 12 percent of them. The less intelligent we are in a particular domain, the more we seem to overestimate our actual intelligence in that domain. In a group of football fans, the one who knows the least is the most likely to be the armchair quarterback, prosecuting the coach for calling the wrong play and preaching about a better playbook.

This tendency matters because it compromises self-awareness, and it trips us up across all kinds of settings. Look what happened when economists evaluated the operations and management practices of thousands of companies across a wide range of industries and countries, and compared their assessments with managers’ self-ratings:

Sources: World Management Survey; Bloom and Van Reenen 2007; and Maloney 2017b.

In this graph, if self-assessments of performance matched actual performance, every country would be on the dotted line. Overconfidence existed in every culture, and it was most rampant where management was the poorest.*

Of course, management skills can be hard to judge objectively. Knowledge should be easier—you were tested on yours throughout school. Compared to most people, how much do you think you know about each of the following topics—more, less, or the same?

Why English became the official language of the United States

Why women were burned at the stake in Salem

What job Walt Disney had before he drew Mickey Mouse

On which spaceflight humans first laid eyes on the Great Wall of China

Why eating candy affects how kids behave

One of my biggest pet peeves is feigned knowledge, where people pretend to know things they don’t. It bothers me so much that at this very moment I’m writing an entire book about it. In a series of studies, people rated whether they knew more or less than most people about a range of topics like these, and then took a quiz to test their actual knowledge. The more superior participants thought their knowledge was, the more they overestimated themselves—and the less interested they were in learning and updating. If you think you know more about history or science than most people, chances are you know less than you think. As Dunning quips, “The first rule of the Dunning-Kruger club is you don’t know you’re a member of the Dunning-Kruger club.”*

On the questions above, if you felt you knew anything at all, think again. America has no official language, suspected witches were hanged in Salem but not burned, Walt Disney didn’t draw Mickey Mouse (it was the work of an animator named Ub Iwerks), you can’t actually see the Great Wall of China from space, and the average effect of sugar on children’s behavior is zero.

Although the Dunning-Kruger effect is often amusing in everyday life, it was no laughing matter in Iceland. Despite serving as governor of the central bank, Davíð Oddsson had no training in

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