Ask a room full of people whether they are above-average drivers and you may get far more than half the hands in the air.
That cannot be literally true in every group.
Psychologists call this the better-than-average effect.
We are not perfectly objective judges of ourselves
People often rate themselves above average on desirable traits such as intelligence, honesty, kindness, or driving skill.
Part of the reason is that we know far more about ourselves than we know about other people.
We see our intentions, effort, and excuses.
We usually see only other people’s results.
Flexible definitions help us out
Words such as “good driver” are vague.
One person may define good driving as being cautious.
Another may define it as reacting quickly.
Conveniently, people tend to emphasize the qualities they personally have.
That lets different people all conclude they are above average using different scorecards.
We know our own intentions
Suppose you cut someone off in traffic.
You know you were distracted for half a second and did not mean to do it.
When another driver does the same thing, you do not get access to the explanation inside their head.
You just see the bad move.
That difference can make our own behavior look more reasonable than everyone else’s.
Does everyone think they are great at everything?
No.
The effect is strongest for traits people value and define somewhat flexibly.
People can be realistic or even overly negative about themselves in other areas.
This is a tendency, not a universal rule.
Is this just arrogance?
Not necessarily.
The effect can arise from ordinary self-protective thinking rather than deliberate bragging.
A modestly positive view of yourself can also support confidence and motivation.
The problem comes when confidence blocks useful feedback.
How can we judge ourselves more accurately?
Use outside measures.
Compare actual outcomes.
Seek feedback from people who have enough information to judge fairly.
Specific evidence is usually better than vague labels such as “good” or “bad.”
Obviously, everybody cannot be above average at everything.
But statistically impossible has never completely stopped human confidence.
A related piece of human behavior appears in Why do we take credit when things go well?, where the brain handles another everyday judgment or response.
And that’s the short explanation.
Related explanations: Why do we take credit when things go well?, Why does confidence make someone seem believable?, and Why do we notice evidence that agrees with what we believe?