Respect, admiration, aggrandizement: Adam Smith as economic psychologist

The paper employs Adam Smith's Theory of Moral Sentiments to illuminate the difference between respect and admiration, and to differentiate between their distorted forms, viz., pomposity and vanity (aggrandizement). As corroborated by the importance of sunk-costs, the analysis shows that respect and admiration are not ordinary tastes. They are rather by-product feelings afforded by the context of pursuing ordinary tastes. The evaluation of one's 'performance' in light of one's estimated ability originates the feeling of respect (or its opposite, embarrassment). The evaluation of one's 'ability' in comparison to the abilities of others determines the degree of admiration. The expression of respect on the basis of inter-individual comparison of abilities is behind pomposity. The expression of admiration on the basis of inter-individual comparison of possessions is behind vanity.