Which type of behavior is a systematic mistake that leads to irrational decisions?

A) risk aversion
B) bounded rationality
C) maximizing profit rather than minimizing costs
D) overconfidence

Overconfidence

The phenomenon where an individual's subjective confidence in their judgments is reliably greater than their objective accuracy.

Irrational Decisions

Choices made by individuals that contradict the best outcome from a rational point of view, often influenced by biases or lack of information.