This study examined antecedents (rewards and threats to self-esteem) a
nd consequences (group conflict and performance) of self- and group-en
hancing positive illusions. Hypotheses regarding the magnitude of thes
e illusions were derived from attention-based and self-esteem-based ex
planations for why people engage in positive illusions. The authors te
sted these hypotheses in a laboratory experiment in which 408 subjects
performed a decision-making task both individually and in a group. Re
sults showed that threats to self-esteem affected the magnitude of ill
usions more than rewards, the two types of illusions differentially af
fected group conflict and performance, and self and group-enhancing il
lusions were positively related. The authors discuss several implicati
ons of their results and of simultaneously studying illusions about bo
th oneself and one's group.