*

Dunning–Kruger Effect

* This is the best-known term.

* It refers to a cognitive bias where people with low ability in a domain overestimate their competence, often because they lack the knowledge to recognize their own mistakes.

* It doesn’t necessarily involve delusions, but it explains why someone might think they’re much more skilled at decision-making than they really are.

Illusion of Superiority (Optimism Bias)

* Sometimes called the “better-than-average effect.”

* People consistently rate their own decision-making, intelligence, or skills as above average, even when objective measures show otherwise.

3.Illusion of Superiority (Optimism Bias)

Delusional Disorder / Grandiosity (Clinical Context)

* When the overestimation of ability moves beyond bias and into fixed false beliefs that resist contrary evidence, it becomes clinical.

* In psychiatry, this would be described as grandiose delusions, a symptom sometimes seen in bipolar disorder or schizophrenia.

4.

Over coming -Overconfidence Bias (Decision Science / Finance)

* In economics and behavioral finance, “overconfidence bias” is the specific term for people placing too much faith in their own judgments, leading to poor decisions and risky behavior.

* hawthorne Effective -

* ✅ If you mean a psychological bias → Dunning–Kruger effect or overconfidence bias.

* ✅ If you mean a clinical, delusional state → grandiose delusions

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