The "Big Fish–Little Pond Effect" illustrates how students' perceptions of their academic capabilities are influenced by the prestige of their educational environment. In elite institutions, students often feel less competent compared to their highly accomplished peers, leading to decreased self-esteem. This effect highlights a contradiction where attending a prestigious school does not necessarily improve a student's self-image or academic confidence.

This concept emphasizes that relative comparisons among peers can significantly impact students. Rather than fostering a sense of achievement, being surrounded by high-achieving classmates can leave students feeling like "little fish" in a "big pond," ultimately affecting their motivation and academic experiences. Gladwell's analysis in "David and Goliath" brings attention to the complexities of education and self-perception.