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Social comparison plays a fundamental role in the evaluation of personal success and self-worth. Rather than assessing our achievements in isolation, we interpret their significance relative to personal goals and critically in comparison to the performance of others. A grade of B in a mathematics exam might elicit pride if one's expectation was a C, yet result in disappointment if an A was anticipated or if peers achieved superior results. These comparative evaluations illustrate how both...
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As formulated by John Thibaut and Harold Kelley, Social Exchange Theory explains human relationships as economic-like exchanges that maximize rewards and minimize costs. This theory suggests that individuals engage in relationships to gain benefits and reduce burdens, similar to economic transactions. It has been widely applied to various types of relationships, including romantic, professional, and social interactions.Rewards and Costs in RelationshipsRelationship rewards include emotional...
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Related Experiment Video

Updated: Oct 9, 2025

The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
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Measuring happiness under interpersonal comparison: An advanced theoretical framework and implications.

Junyi Chai1,2,3

  • 1Division of Business and Management, BNU-HKBU United International College, Zhuhai, China.

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Summary

This study explores how past financial situations affect current happiness through social comparison and self-adaptation. It reveals how earnings can lead to disappointment, impacting work decisions.

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Area of Science:

  • Behavioral Economics
  • Psychology
  • Decision Science

Background:

  • Subjective happiness is a long-standing area of inquiry.
  • Recent utility theory quantifies happiness within social contexts.
  • Past financial conditions influence present happiness via social comparison and self-adaptation.

Purpose of the Study:

  • To extend utility theory for analyzing behavioral patterns.
  • To integrate prospect theory's gain-loss utility function.
  • To predict psychological phenomena like craving and explore happiness-earnings relationships.

Main Methods:

  • Developed an extended utility theory framework.
  • Incorporated prospect theory's gain-loss utility function.
  • Analyzed behavioral patterns and psychological phenomena.

Main Results:

  • High payoffs can cause immediate and prolonged disappointment.
  • Social comparison effects can lead to workers quitting jobs.
  • Provided new explanations for New York cabdrivers' labor-supply decisions.

Conclusions:

  • The study deepens understanding of how social comparisons influence labor supply.
  • Highlights the complex relationship between earnings, happiness, and psychological responses.
  • Offers insights into decision-making under varying financial and social conditions.