Does power cloud one's ability to make good decisions?

The overall sense of control that comes with power tends to make people feel overconfident in their ability to make good decisions. Studies suggest that that power leads to a feeling of over-precision, a tendency to overestimate the accuracy of personal knowledge

In an experiement using a betting game, people who were made to feel powerful actually lost money betting on their knowledge. In contrast, those who didn't feel powerful were less risky with their bets and didn't lose money.

The researchers suggest that to avoid this effect, the  most effective leaders bring people around them who critique them.