The Outgroup Homogeneity Effect is a cognitive bias where individuals perceive members of an outgroup as more similar to each other than they actually are. This effect often leads people to stereotype those outside their own group, assuming they share the same traits or behaviors. For example, someone might think that all members of a particular ethnic group behave in the same way, overlooking individual differences. This phenomenon can contribute to prejudice and discrimination, as it reinforces negative stereotypes about outgroups. By viewing others as homogeneous, individuals may fail to recognize the diversity within these groups, which can hinder understanding and empathy.