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Despite a large number of empirical studies showing blacks to have higher levels of self-esteem than whites, no adequate explanation for this difference has been developed. This paper proposes a theory dealing with differences in self-process and, in a related manner, self-esteem between blacks and whites, utilizing the concept of selective credulity (i.e., having relatively more faith in others' opinions of us who are relatively positive). Specifically, it is hypothesized that because blacks (as compared to whites) are more likely to focus on interpersonal relations and less likely to focus on internalized standards of comparison for purposes of self-enhancement, (a) blacks maximize the rewards of their interpersonal relations more so than whites (reflected by differences in selective credulity), and (b) levels of self-esteem between blacks and whites are no different when controlling the differential impact of selective credulity on self-esteem. Utilizing data from 1,560 high school students, evidence is presented which provides some initial support for the proposed theory. [ABSTRACT FROM AUTHOR]