What Is The Illusion of Transparency In Behavioral Economics?

Illusion of transparency is a psychological phenomenon in which people have a tendency to overestimate the extent to which their internal thoughts and feelings are known or understood by others. This can happen when people believe that their internal states are more obvious or apparent to others than they really are, and may lead them to underestimate the need to communicate or explain their thoughts and feelings. For example, if you are talking to someone and you assume that they understand your perspective or intentions, you may not feel the need to explain yourself or to provide additional context. Illusion of transparency can lead to misunderstandings and conflicts, as people may not realize that their thoughts and feelings are not as obvious or understood as they think. To avoid illusion of transparency, it is important to be aware of our own biases and to make an effort to communicate our thoughts and feelings clearly and explicitly, rather than assuming that others will automatically understand them.

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