Relative Effects on Life Satisfaction Revisited: Social Comparison is Only Half the Story

Abstract Empirical happiness research clearly shows that life satisfaction depends, among other things, on relative effects. However, even where the data do not permit any inferences regarding the mechanisms that give rise to relative effects, studies often claim that relative effects are the result of comparisons that individuals make between their situation and that of others. We argue that this interpretation is not always justified because it disregards existing alternative interpretations with strong empirical support and a long tradition in the literature. To structure the interpretation of relative effects, we propose a model that distinguishes between the relative effects that influence aspirations and those that influence capabilities (i.e., the objective opportunities available to a person). We show where a number of relative effects fall into place in this model and we discuss the significance of our model for life satisfaction research.