Fragile Self-Esteem

Botond Koszegi, George Loewenstein, Takeshi Murooka

    Research output: Contribution to journalArticlepeer-review

    Abstract (may include machine translation)

    We develop a model of fragile self-esteem - self-esteem that is vulnerable to objectively unjustified swings - and study its implications for choices that depend on, or are aimed at enhancing or protecting, one's self-view. In our framework, a person's self-esteem is determined by sampling his memories of ego-relevant outcomes in a fashion that in turn depends on how he feels about himself, potentially creating multiple fragile "self-esteem personal equilibria."Self-esteem is especially likely to be fragile, as well as unrealistic in either the positive or the negative direction, if being successful is important to the agent. A person with a low self-view might exert less effort when success is more important. An individual with a high self-view, in contrast, might distort his choices to prevent a collapse in self-esteem, with the distortion being greater if his true ability is lower. We discuss the implications of our results for mental well-being, education, job search, workaholism, and aggression.

    Original languageEnglish
    Pages (from-to)2026-2060
    Number of pages35
    JournalReview of Economic Studies
    Volume89
    Issue number4
    DOIs
    StatePublished - 1 Jul 2022

    Keywords

    • Confidence
    • Impostor syndrome
    • Insecurity
    • Memory
    • Overconfidence
    • Personal equilibrium
    • Self-esteem
    • Self-esteem personal equilibrium

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