We not only care about what others think of the world, but
also about what others think of us. The ability to understand
what others think of one’s competence is especially important
for young children, as they are beginning to learn about them-
selves and form new relationships with others. Here we ask
whether young children can use others’ observations of their
own failures and successes to infer others’ beliefs about the
self’s competence, and would even forego an opportunity to
teach new information in order to demonstrate their compe-
tence. In Exp. 1 (3, 4, & 5-year-olds), when a confederate had
observed the child initially fail but eventually succeed at op-
erating a toy, children chose to teach her a new toy; however,
when the confederate had observed the initial failures but not
the final success, more children chose to show the familiar toy
again to demonstrate their competence. In Exp. 2 (3- & 4-
year-olds), we replicate this finding. Even in preschool years,
children can reason about what others of their own competence
and strategically decide whether to communicate information
about the self or the world; these results are discussed in light
of prior work on reputation management and Theory of Mind.