Abstract

This article links recent work on assimilative and contrastive counterfactual thinking with research on the impact of accountability on judgment and choice. Relative to participants who felt accountable solely for bottom-line performance outcomes, participants who were accountable for their decision-making process (a) had more pronounced differential reactions to clearly winning versus (winning but) nearly losing and to clearly losing versus (losing but) nearly winning; (b) were less satisfied with the quality of their decisions when they nearly lost and more satisfied with the quality of their decisions when they nearly won; and (c) invested less money into investments that nearly failed and more money into investments that nearly succeeded. This pattern is consistent with the hypothesis that process accountability amplified assimilative counterfactual thinking, whereas outcome accountability attenuated it. The evidence underscores the power of contextual features of the decision-making environment to shape key cognitive and affective consequences of upward and downward counterfactual comparisons.