People vicariously experience embarrassment when observing others' public pratfalls or etiquette violations. In two consecutive studies we investigated the subjective experience and the neural correlates of vicarious embarrassment for others in a broad range of situations. We demonstrated, first, that vicarious embarrassment was experienced regardless of whether the observed protagonist acted accidentally or intentionally and was aware or unaware that he/she was in an embarrassing situation. Second, using functional magnetic resonance imaging (fMRI), we showed that the anterior cingulate cortex and the left anterior insula, two cortical structures typically involved in vicarious feelings of others' pain, are also strongly implicated in experiencing the ‘social pain’ for others' flaws and pratfalls. This holds true even for situations that engage protagonists not aware of their current predicament. Importantly, the activity in the anterior cingulate cortex and the left anterior insula positively correlated with individual differences in trait empathy. The present findings establish the empathic process as a fundamental prerequisite for vicarious embarrassment experiences, thus connecting affect and cognition to interpersonal processes.“When we are living with people who have a delicate sense of propriety, we are in misery on their account when anything unbecoming is committed. So I always feel for and with Charlotte when a person is tipping his chair. She cannot endure it.” [Elective Affinities, J. W. Goethe].

During everyday interactions people constantly receive feedback on their behavior, which shapes their beliefs about themselves. While classic studies in the field of social learning suggest that people have a tendency to learn better from good news (positivity bias) when they perceive little opportunities to immediately improve their own performance, we show updating is biased towards negative information when participants perceive the opportunity to adapt their performance during learning. In three consecutive experiments we applied a computational modeling approach on the subjects’ learning behavior and reveal the negativity bias was specific for learning about own compared to others’ performances and was modulated by prior beliefs about the self, i.e. stronger negativity bias in individuals lower in self-esteem. Social anxiety affected self-related negativity biases only when individuals were exposed to a judging audience thereby potentially explaining the persistence of negative self-images in socially anxious individuals which commonly surfaces in social settings. Self-related belief formation is therefore surprisingly negatively biased in situations suggesting opportunities to improve and this bias is shaped by trait differences in self-esteem and social anxiety.

While being in the center of attention and exposed to other's evaluations humans are prone to experience embarrassment. To characterize the neural underpinnings of such aversive moments, we induced genuine experiences of embarrassment during person-group interactions in a functional neuroimaging study. Using a mock-up scenario with three confederates, we examined how the presence of an audience affected physiological and neural responses and the reported emotional experiences of failures and achievements. The results indicated that publicity induced activations in mentalizing areas and failures led to activations in arousal processing systems. Mentalizing activity as well as attention towards the audience were increased in socially anxious participants. The converging integration of information from mentalizing areas and arousal processing systems within the ventral anterior insula and amygdala forms the neural pathways of embarrassment. Targeting these neural markers of embarrassment in the (para-)limbic system provides new perspectives for developing treatment strategies for social anxiety disorders.