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Actor–observer asymmetry (also actor–observer bias) explains the errors that one makes when forming attributions about the behavior of others (Jones & Nisbett 1971). When people judge their own behavior, and they are the actor, they are more likely to attribute their actions to the particular situation than to a generalization about their personality. Yet when an observer is explaining the behavior of another person (the actor), they are more likely to attribute this behavior to the actors’ overall disposition rather than to situational factors. This frequent error shows the bias that people hold in their evaluations of behavior (Miller & Norman 1975). Because people are better acquainted with the situational (external) factors affecting their own decisions, they are more likely to see their own behavior as affected by the social situation they are in. However, because the situational effects of anothers' behavior are less accessible to the observer, observers see the actor's behavior as influenced more by the actor's overall personality. The actor-observer asymmetry is a component of the ultimate attribution error.

 Sometimes the Actor–observer asymmetry is defined as the fundamental attribution error  ‘,  which is when people tend to focus on the internal, personal characteristic or disposition as cause of a behavior rather than the external factors or situational influences. .    The actor-observer asymmetry tends to happen in event where people express behavioral emotion, such a first meeting, a blind date, a shopping at a supermarket etc... (Jones & Nisbett, 1972). From a study by Jhonson and Sheldon (1993) when asking people which object they have noticed when talking with another person, their common answers were based on their own thought and the other person appearance  '

Cultural differences Cultural differences may impact how certain behaviors or actions are attributed and interpreted. Current research supports the idea that Western culture emphasizes individualism, whereas East Asian cultures emphasize collectivism. Individualistic cultures focus on the object and attribute behavior to an overall disposition within a situation, whereas collectivist cultures focus on the context and external factors that influence behavior

 The fundamental attribution error differs in different cultures. In the individualism cultures, people tend to favor dispositional explanations for behavior in contrary of the collectivism cultures where P. B. Smith and Bond (1994) implied that the fundamental attribution error is minimal or even absent, so they tend to focus on situational explanation for behavior.     Additionally, it has differed in religious perspective. Protestant are most likely to focus on internal factor whether than external for behavior. Unlike the Catholic who would tend to focus on the external factor. Because Protestant rely too much on correlational evidence without evidence of causality (MacKinnon, 2008). It is also cause by the fact that protestant have stronger faith and are more aware of the soul's condition than Catholic.