Counterfactual generation is an important part of reasoning. Both the
judgment of events and affective reactions to those events depend not
only on the events themselves, but on counterfactual alternatives to t
hose events. Counterfactual thinking serves several positive functions
. However, there are also dysfunctional aspects. First, judgments of g
eneral versus specific instances are often inconsistent, and this lead
s to problematic, irrational decisions. We explain these inconsistenci
es by suggesting that specific instances easily afford counterfactuals
, and are judged in the context of these counterfactuals. Alternativel
y, general cases are evaluated in terms of quite different contrast ca
ses, global expectations. Second, in assigning blame for the negative
outcome of a chain of events, people assign too much causality to rece
nt events. Our explanation is that these recent events are most access
ible and are most likely to be mutated in the course of counterfactual
generation. Such mutability is important in causal assignment.