Counterfactual thinking often arises in response to negative experiences or events that evoke feelings of disappointment or distress. When individuals reflect on how things could have turned out differently, they tend to focus on the unfavorable outcomes and the emotions that accompany such situations. This reflection can lead to a cycle of negative feelings, as people ponder alternatives to their current circumstances.

In "The Paradox of Choice," Barry Schwartz discusses how this type of thinking relates to decision-making and dissatisfaction. By frequently comparing what is with what could have been, individuals can become trapped in a mindset that emphasizes their regrets and missed opportunities, further compounding feelings of unhappiness. This notion highlights the emotional consequences of choice and the human tendency to desire different outcomes in the face of distressing situations.