Do you often overvalue your experience, skills, knowledge, etc?

I strongly believe we overvalue our experience, knowledge, skills...rather simply anything that can be defined as measure of success in society :-)...I do that often and to some extent knew it too whenever I encountered my frailities. I got a rude awakening to it when I read the book Irrationally predictable" and some of the works of Daniel Kahnemean and Taversky....

But, why do we do this and how do we avoid it? Lets answer the first part of the question:

1. To gain social acceptance.
2. To prove to the people we know and sometimes want to know to build a superior perception of us.
3. To get an expected treatment of ourselves or to achive the higher gaols we set upon ourselves in society, workplace and so on....

How can we avoid it?
1. Accepting the fact that our measures of success is relative. Its all a matter of anchoring ourselves to the right individuals/groups and our position/status quo in a society is relative.
2. Constantly, reminding ourselves that the workings of this world is far more complex than that appears on the surface or at our levels of understanding.
3. Reading more and more about topics that we know we know too little about!

How do we handle such people at work?
1. Pamper their ego: Just give it to them...let them reach the self-realization on their levels! Atleast, you please their ego and let him/her be happier in their own perceptions :-)
2. Probe them to discover if they really know what they think they cliam to know....
3. Netural approach, just listen to them. Most of the time you are never entitled to your opinions or maybe the other person is a poor listenet!
4. Remind them that one knows far less than what one thinks and if possibel quote them to "predictably irrational" and works of Daniel Kahneman :-)...
5. Prove to them you know much more than them...hee hee...you bet this is something that will please your ego!!!

We may choose a combination of options...not really restricted to one...Whats your view?