The egocentric bias causes us to think that our own perspectives are more important when considering events, ideas, and beliefs. For example, we tend to overestimate the amount we contributed to a team project.

The bias can make it more challenging to understand other people's perspectives. It can cause us to misinterpret situations and make poor judgements.

People tend to exaggerate their role in a situation, but the exaggeration is not limited to egocentric individuals. Psychologists are discovering that a somewhat skewed view of reality is a universal trait that affects all people.

The reason we suffer from this cognitive bias is apparent: We are more aware of our own behaviours, causing us to view events from our own perspective. Our experiences are also more personally relevant and, therefore, easier to recall.