Example of Hindsight Bias
- After a company goes bankrupt, an investor says "I always knew that company was going to fail" despite having invested in it themselves.
The investor is rewriting their memory to believe they predicted an outcome they did not actually foresee. - Following an election upset, people claim the result was obvious, even though polls and experts predicted differently.
The surprising outcome is now seen as inevitable, distorting the memory of pre-election uncertainty.
Note
This is a common biasAlso known as: "Knew-it-all-along" effect or Creeping Determinism. Extensively studied by Baruch Fischhoff in the 1970s.
