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  3. American Economic Review
  4. December 2005
  5. A Model of Positive Self-Image in Subjective Assessments

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

A Model of Positive Self-Image in Subjective Assessments

  • Luís Santos-Pinto
  • Joel Sobel
American Economic Review
vol. 95, no. 5, December 2005
(pp. 1386–1402)
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Abstract

This paper suggests a mechanism that describes individuals' positive self-image in subjective assessments of their relative abilities. The mechanism assumes individuals have heterogeneous production functions that determine ability as a function of multiple skills; make skill-enhancing investments with the goal of maximizing their ability; and make ability comparisons using their own production function. Within this framework, the paper provides conditions under which there is positive self-image. Positive self-image is increasing in the ease of the task, the number of different skills needed for the task, and the variability of production technologies in the population.

Citation

Santos-Pinto, Luís, and Joel Sobel. 2005. "A Model of Positive Self-Image in Subjective Assessments." American Economic Review, 95 (5): 1386–1402. DOI: 10.1257/000282805775014245

JEL Classification

  • D11 Consumer Economics: Theory