This article reviews the literature on aspirations in economics, with a particular focus on socially determined aspirations. The core theory builds on two fundamental principles: (a) Aspirations can serve to inspire, but still higher aspirations can lead to frustration and resentment; and (b)...

We test experimentally an explanation of over and under confidence as motivated by (perhaps unconscious) strategic concerns, and find compelling evidence supporting this hypothesis in the behavior of participants who send and respond to others ́statements of confidence about how well they have...