Fragile Self-Esteem

Botond Koszegi*, George Loewenstein, Takeshi Murooka

*Corresponding author for this work

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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