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The Visualization Trap

Hindsight bias—the irrational belief that past outcomes were predictable—is a well-understood psychological phenomenon. Our research suggests that this bias is becoming stronger, thanks largely to an abundance of visual information, including re-creations and simulations. But in measuring it, we’ve also discovered its near opposite, what we call the propensity effect: Visualization may also, in certain circumstances, make people hyperconfident of impending events’ outcomes.

A version of this article appeared in the May 2010 issue of Harvard Business Review.

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