One influential perspective on what motivates people's behavior is detailed in Tory Higgin's self-discrepancy theory (Higgins, 1987). He proposed that people hold disagreeing internal representations of themselves that lead to different emotional states.

Unrealistic optimism bias is the tendency to overestimate the likelihood of positive outcomes. This cognitive bias makes individuals believe they are less likely to experience failures, setbacks, or risks and more likely to succeed than others. For example, people may assume they are less prone to health issues, accidents, or financial struggles than their peers, even when they share similar risk factors.One key component of this bias is the above-average effect, where individuals perceive...

Self-discrepancy theory explains how people compare their actual self to their ideal and ought selves and how mismatches between these self-guides can lead to emotional distress. Developed by E. Tory Higgins, the theory distinguishes among three components of self-concept: the actual self, the ideal self, and the ought self. These refer respectively to how individuals perceive themselves, how they aspire to be, and how they believe they are obligated to be. Emotional well-being, self-esteem,...

In microeconomics, consumer surplus represents the economic gain that consumers experience when they purchase a good or service for less than the highest price they are willing to pay. This surplus arises from the characteristics of the demand function, which links the quantity of a good to the price consumers are willing to pay. As the quantity of a good increases, the price that consumers are willing to pay for each additional unit typically decreases, resulting in a downward-sloping demand...