According to Freud, the ego is part of personality that mediates the demands of the id, the superego and reality. The ego prevents us from acting on our basic urges (created by the id), but also works to achieve a balance with our moral and idealistic standards (created by the superego). While the ego operates in both the preconscious and conscious, it's strong ties to the id means that it also operates in the unconscious.
The ego operates based on the reality principle, which works to satisfy the id's desires in a manner that is realistic and socially appropriate. For example, if a person cuts you off in traffic, the ego prevents you from chasing down the car and physically attacking the offending driver. The ego allows us to see that this response would be socially unacceptable, but it also allows us to know that there are other more appropriate means of venting our frustration.
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