Erin is an average worker. She does her job competently, but not with any true excellence. Several of her coworkers, however, tend to slack off, are frequently late, and make the same mistakes over and over again. As a result, Erin feels that she is an excellent worker that her company could not live without. Erin’s inflated sense of her own work quality is an example of the __________ effect.

People generally use the attribution process to explain their behavior. In many situations, the person uses the reference effect to remember information about himself, forming personal constructions that allow them to explain what happens to them in comparison to other people.

For example, in the case of Erin, she observes her surroundings to create a personal construction about her worth within the company (reference effect). When comparing himself only with his colleagues, he does not observe other internal or external attributions of the situation, such as his actual performance, and is perceived as an excellent employee.

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