Optimism bias involves a belief that things will turn out better than they do. Pessimism bias a belief that things will turn out worse. Both misjudge the actual risk and likelihood of outcome.
Optimism bias overlaps with ego bias, while pessimism bias overalps with reverse ego bias.
In both biases the person acknowledges that there are risks present. The difference in outcome is affected by individual performance and fortune (skill and luck).
Bias
Positive Outcome
Negative Outcome
optimistic
overestimates chances
underestimates risk
pessimistic
underestimates chances
overestimates risk
Optimism bias may be seen in young adults who tend to see themselves as invincible while their peers are more vulnerable.
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