Motivated Reasoning in the Social Domain

Abstract

Individuals engage in motivated reasoning to maintain a positive self-image in ego-relevant domains. This paper experimentally tests motivated reasoning regarding one's altruism in the forms of both asymmetric updating and selective recall, as well as their dynamics. We, for the first time, demonstrate the robustness of the optimistic updating bias in the domain of social behavior. More interestingly, the optimistic updating was more severe when participants updated beliefs about themselves being relatively less selfish than about being more altruistic. Further, we document evidence consistent with the belief-based utility foundation of the optimistic belief updating. We replicate and extend earlier findings about selective recall, and demonstrate a linkage between the recall and belief patterns. These results could inform theories of motivated reasoning, and generate implications for both self-image maintenance and social interactions.

Keywords: Asymmetric Updating, Selective Recall, Dictator Game, Altruism, Laboratory Experiment JEL Codes: C91

JEL Classification: C91, D64, D83, D84, D91