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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