What do we call the psychological defense mechanism that distorts reality to make oneself feel better about a decision?

Rationalization is a psychological defense mechanism where an individual distorts or justifies reality in a way that makes their decisions or feelings seem more acceptable or understandable, even if they are not. This process allows a person to maintain a positive self-image by creating seemingly logical reasons for their actions, thereby avoiding the discomfort associated with negative feelings or guilt.

For example, if someone makes a poor investment decision, they might convince themselves that the investment will recover or that it was a necessary risk, rather than confronting the fact that the decision was based on poor judgment. This self-deception helps in alleviating anxiety or cognitive dissonance that arises from acknowledging a potentially unpleasant reality.

Other terms like "sour grapes" typically refer to dismissing something undesirable after not being able to obtain it, while "intellectualization" involves detaching from emotional responses through rational analysis. "Justification," while similar, doesn't specifically denote the distortion of reality as deeply as rationalization does. Thus, rationalization stands as the most fitting term for the described defense mechanism, as it captures the essence of altering one's perception to feel better about a decision.