What is the self-serving bias and how does it affect economic choices?

What is the self-serving bias and how does it affect economic choices?

The self-serving bias is a cognitive bias where individuals tend to attribute their successes to internal factors and their failures to external factors. This bias affects economic choices by influencing individuals to take credit for their successes and avoid responsibility for their failures. As a result, individuals may engage in risky behavior, overestimate their abilities, and make biased decisions based on their own self-interest, which can lead to suboptimal economic outcomes.