The Kruger Effect is a cognitive bias where individuals with low ability at a task overestimate their skills. This phenomenon occurs because they lack the knowledge to recognize their own incompetence. As a result, they may feel more confident than those who are actually more skilled. Conversely, highly skilled individuals may underestimate their abilities, believing tasks that are easy for them are also easy for others. This can lead to a lack of confidence in their skills. The Kruger Effect highlights the importance of self-awareness and the challenges of accurately assessing one's own competence.