http://en.wikipedia.org/wiki/Social_psychology_(psychology)
http://en.wikipedia.org/wiki/Cognitive_dissonance
http://en.wikipedia.org/wiki/Confirmation_bias
http://en.wikipedia.org/wiki/Heuristic
http://en.wikipedia.org/wiki/Bystander_effect
And a few others that were links inside those pages - interesting stuff.
second and third link are indirect answers to
Stephanie@ConstituteExistence's last comment (I'm not sure how else I should reply) :P
As a more direct answer I would probably say most (if not all) people are not completely honest with themselves. I see it as a human trait (flaw?) which I think has multiple reasons why it exists. Selfishness, self-defense, limited time, differences in cognitive abilities, memory recall, memory storage and many other quantifiable reasons. Many more are listed on the Cognitive Dissonance and Confirmation Bias wiki pages.
I think a lot of it is based on our limited time in life, life experiences and time we are willing to spend thinking honestly about such things. Even then I believe another party is key to challenging thoughts and theories. Someone like the soul mate I eluded to from one of my other posts (also like in Good Will Hunting).
I like to keep people around me on their toes if I get the chance. Some call me a pain in the butt, but to each his own I guess. I see the ability so see things differently is both a blessing and a curse. If only I could profit on the blessing part...
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