Final answer:
Egocentric bias occurs as a cognitive bias where individuals enhance their memories, often misremembering events in a way that emphasizes their own importance. It serves to protect self-esteem and stems from both developmental stages in childhood and the reconstructive nature of memory in adulthood. Cultural influences and self-serving bias are also linked to egocentric bias.
Step-by-step explanation:
Egocentric bias occurs because individuals tend to prioritize their own perspective and experiences over others when making judgments or remembering events. It involves enhancing and distorting our memories to align with our own self-image and beliefs. For example, someone might remember themselves scoring the winning goal in a soccer match when they actually only assisted. This bias stems from our natural tendency to see ourselves in a favorable light and protect our self-esteem.