Dealing with ideas that go against our internal image of ourselves

We're constantly receiving feedback about ourselves that either supports the internal image of ourselves or contradicts it. For example: we might think that we're smart and intelligent people when it comes to a specific area of knowledge. I've found that people can deal with information that contradict their internal image very differently, and generally fall into two camps. Let's use the example I've used in the sentence previously and explain the two different reactions:

Protection of the internal image:
So someone has just told you that what you've said isn't true with regard to a certain subject. I've found that when some people get called out - the "protection of the internal image" people, they go on to either argue their case and never back down and/or get angry with the source of contradiction. I see this as a form of denial. Rather than look inside to question your perception of yourself, and question your knowledge of a certain subject, you protect that idea (the idea that you DO know that specific subject) and get angry at the source that is putting that idea into question.

Pros:
There are pros to this mentality. I've found these people to be more confident, which leads to more decisive decision making. I'm not saying that these decisions are always the right one, but in some situations, a decision just needs to be made.

Con:
These people can be extremely frustrating to talk to and if their knowledge on a subject is completely differently to what their internal perception of the extent to their knowledge is, they could be detrimental to the group, as their inflated views will damage decision making.

Constant re-adjustment of the internal image:
Other people are the other way and constantly look inside to question their idea of their internal image when introduced to contradicting information. These people tend not to react to things people say but rather reflect, judge whether it is reliable information and re-adjust their perception without emotional response.

Pros:
This mentality is good for remaining attuned to how the world perceives you and is good for realising areas of growth and areas where you excel.

Cons:
One bad/good comment can make you re-adjust your internal image too far, and pessimists tend to prefer to hear negative comments whereas optimists tend to prefer to hear positive comments. It can also leave you in a state of constant questioning when it comes to knowledge of a subject, which ultimately has a negative impact on your confidence and your decision making/leadership.