[3] The term "curse of knowledge" was coined in a 1989 Journal of Political Economy article by economists Colin Camerer, George Loewenstein, and Martin Weber.
This poor reconstruction was theorized by Fischhoff to be because the participant was "anchored in the hindsightful state of mind created by receipt of knowledge".
The idea that better-informed parties may suffer losses in a deal or exchange was seen as something important to bring to the sphere of economic theory.
[5] A 1990 experiment by a Stanford University graduate student, Elizabeth Newton, illustrated the curse of knowledge in the results of a simple task.
Therefore, it is suggested that "the influence of plausibility on the curse of knowledge in adults appears to be small enough that its impact on real-life perspective-taking may need to be reevaluated.
In the Camerer, Loewenstein and Weber article, it is mentioned that the setting closest in structure to the market experiments done would be underwriting, a task in which well-informed experts price goods that are sold to a less-informed public.
Investment bankers value securities, experts taste cheese, store buyers observe jewelry being modeled, and theater owners see movies before they are released.
[15][16] This is important because the predictions of experts can influence educational equity and training as well as the personal development of young people, not to mention the allocation of time and resources to scientific research and crucial design decisions.
[17] Effective teachers must predict the issues and misconceptions that people will face when learning a complex new skill or understanding an unfamiliar concept.
It intends to increase student learning by narrowing the gap between expert and novice thinking resulting from the curse of knowledge.
The process seeks to make explicit the tacit knowledge of experts and to help students master the mental actions they need for success in particular disciplines.
Academics are usually employed in research and development activities that are less well understood than those of professionals, and therefore submit themselves to peer review assessment by other appropriately qualified individuals.
[19][self-published source] The difficulty experienced people may encounter is exemplified fictionally by Dr. Watson in discourses with the insightful detective Sherlock Holmes.