Illusions of control refer to the tendency of individuals to believe they have more influence over events than they actually do. This cognitive bias can lead people to overestimate their ability to affect outcomes, particularly in uncertain situations, such as gambling or investing. These illusions can impact decision-making and risk assessment, as individuals may take unnecessary risks or feel overly confident in their choices. Understanding this phenomenon is important in fields like psychology and behavioral economics, where it can help explain why people often make irrational decisions despite clear evidence to the contrary.