Chambers, J. R., Epley, N., Savitsky, K., Windschitl, P. D. (2008). Knowing too much: Using private knowledge to predict how one is viewed by others. Psychological Science, 19, 542-548.

People have more information about themselves than others do, and this fundamental asymmetry can help to explain why individuals have difficulty accurately intuiting how they appear to other people. Determining how one appears to observers requires one to utilize public information that is available to observers, but to disregard private information that they do not possess. We report a series of experiments, however, showing that people utilize privately known information about their own past performance (Experiments 1 and 2), the performance of other people (Experiment 3), and imaginary performance (Experiment 4) when intuiting how they are viewed by others. This tendency can help explain why people's beliefs about how they are judged by others often diverge from how they are actually judged.