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The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies

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Alternative reference points and outcome evaluation: the influence of affect.

Michael D Johnson¹, Remus Ilies, Terry L Boles

¹Department of Management and Organization, University of Washington, Seattle, WA 98195, USA. mdj3@uw.edu

The Journal of Applied Psychology

|August 17, 2011

Summary

People use alternative reference points to improve negative moods when evaluating decisions. Positive moods remain stable regardless of reference points, but negative moods improve only with favorable comparisons.

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Area of Science:

Psychology
Decision Science
Affective Science

Background:

Decision outcomes are often evaluated relative to reference points.
Alternative reference points arise when outcomes can be viewed positively or negatively depending on the chosen referent.
The influence of affective states on this evaluation process is not fully understood.

Purpose of the Study:

To investigate how affective states influence decision outcome evaluation.
To examine the role of salient alternative reference points in this process.

Main Methods:

Two studies were conducted involving participants evaluating outcomes.
Affective states (mood) were measured before and after the evaluation task.
The presence or absence of salient alternative reference points was manipulated.

Main Results:

Individuals in positive moods maintained their mood regardless of reference points.
Individuals in negative moods improved their mood only when a favorable alternative reference point was available.
When no favorable alternative reference point existed, negative moods persisted.

Conclusions:

Outcome evaluation is a motivational process influenced by mood regulation.
Individuals strategically select reference points to maintain or improve their affective state.
Alternative reference points serve as a mood-repair mechanism for those in negative affective states.