Liars are controlling
One of the main reasons why people lie is not only to control their own image but also to control how someone else feels. If they start making up stories and stretch the truth, liars could easily manipulate the reaction of whoever might be around them. This goes even further if the liars know their audience very well.
In this case, they will make up stories that are meant to “target” the audience, so to speak. Their wish is to impress and to be validated by outsiders. If they come up with the perfect stories for the audience in question, then they will bathe in laughter and positive feedback.
