Why do people sometimes overestimate their knowledge—more often than not, those who are not well-versed in the subject at hand? Twenty years ago, two researchers studied this phenomenon and tried to explain it from a psychological point of view. This phenomenon is now known as the Dunning-Kruger effect after the names of the researchers. According to a report presented at a seminar of the HSE Department of Applied Economics, this effect has a purely statistical explanation.
