Counterfactual thinking—the capacity to reflect on what would, could, or should have been if events had transpired differently—is a pervasive, yet seemingly paradoxical human tendency. On the one hand, counterfactual thoughts can be comforting and inspiring (Carroll & Shepperd, Chapter 28), but on the other they can be anxiety provoking and depressing (Zeelenberg & Pieters, Chapter 27). Likewise, such thoughts can illuminate pathways toward better future outcomes (Wong, Galinsky, & Kray, Chapter 11), yet they can also promote confusion and lead (...) us astray (Sanna, Schwarz, & Kennedy, Chapter 13). The first part of this chapter focuses on work that supports the prevailing Zeitgeist in the counterfactual thinking literature: Counterfactual thinking is beneficial. The second part of the chapter, however, strikes a more cautionary tone by reviewing work that describes some deleterious consequences of counterfactual thinking. We conclude by offering a tentative reconciliation of these conflicting perspectives and suggesting directions for future research. (shrink)

The big-fish-little-pond effect (BFLPE) is the tendency for students to evaluate themselves more favourably when they have high rank in a low rank school than low rank in a high rank school. Research has documented the BFLPE on experienced emotions. We conducted three studies that examined forecasts of how the BFLPE influences other people’s emotions (i.e. empathic forecasts). In Study 1, participants received performance feedback about themselves or another person and reported their own affect or anticipated the other person’s affect. (...) Results extended the BFLPE to empathic forecasting. Moreover, forecasters anticipated that the BFLPE had a stronger influence on negative emotion than it actually did. Study 2 tested whether neglect of group rank underlies the BFLPE in empathic forecasting. Empathic forecasts were strongly influenced by another person’s rank in their group, but only weakly influenced by group rank. Study 3 tested whether extremity of group ranks exacerbates the BFLPE in empathic forecasting. Empathic forecasts were especially favourable (unfavourable) when a target had very high (low) rank in a very low (high) rank group. These data support the BFLPE in empathic forecasting, but also illustrate ways in which it is both similar to and different from actual experience of the effect. (shrink)