Hindsight bias is a psychological concept often studied in behavioral economics where people believe they accurately judged an outcome before it happened. As a result, they then believe they can foresee future events because of that prediction. Believing they can predict the future can be a way to maintain a feeling of control over life and its often unpredictable events. How Hindsight Bias Works When people make statements like, ‘I knew that would happen’, and ‘I called it’ after an event takes place, those are examples of hindsight bias. The danger with people claiming they predicted future events is that they let this belief guide their decision making in the future. It can also mean individuals take less time to vet their decisions before making them since they feel the future is predictable. How it usually happens is when we’re faced with a decision, we recall a prediction we made in the past and make future decisions based on that. Hindsight bias can impact people’s beliefs and behaviors and sometimes, for the worst. Causes of Hindsight Bias There are three main causes of hindsight bias