Reference group bias significantly shapes perceptions and decision-making processes by emphasizing relative comparisons over objective standards. When individuals experience a change in status, such as a promotion or a financial increase, their reference points shift accordingly. For instance, a professor at an Ivy League institution will benchmark their salary against peers at similar institutions rather than an absolute figure. This tendency to compare oneself relative to others means that, after becoming wealthy, individuals may no longer compare their earnings to past salaries but instead to wealthier peers, which can lead to feelings of inadequacy. Our cognitive biases favor negative comparison, as we tend to focus on reference points that induce feelings of dissatisfaction rather than those that promote positivity. This phenomenon extends beyond income to other domains, such as athletic performance, where comparisons are made to extraordinary examples that create a sense of inferiority. Consequently, individuals often overlook reference points that could inspire or affirm their accomplishments, perpetuating a cycle of negative comparison.
Can you accurately identify what aspects of life make you happy? Would you even know if you found true happiness? Leading psychology professor and happiness expert Laurie Santos dives deep on all the factors that contribute to our happiness, why we spend so much energy pursuing it, some evidence-based methods to boost your happiness, why it’s crucial to protect yourself from unhappy people, and so much more.
Santos is a Professor of Psychology and the Head of Silliman College at Yale University. Since 2018 she’s been teaching Psychology and the Good Life, which is one of the most popular courses at Yale and at one point included approximately a quarter of the school’s undergraduates. She has also turned her course into a popular podcast series, The Happiness Lab.