Counterfactual thinking involves comparing one's real-life experiences with hypothetical scenarios or alternatives. This kind of reflection allows individuals to consider how their lives might have been different if certain choices had been made differently. It emphasizes the discrepancies between what is and what could have been, highlighting the human tendency to ponder "what if" situations.

In his book, "The Paradox of Choice: Why More Is Less," Barry Schwartz explains how this mode of thinking can influence emotions and decision-making. By analyzing both actual experiences and imagined outcomes, individuals can gain insights into their choices, but it may also lead to regrets or dissatisfaction when they focus too much on paths not taken.