What is Reactive Devaluation?

Reactive Devaluation is a mental model used for better thinking and decision-making.

How do you apply Reactive Devaluation?

To apply Reactive Devaluation, identify situations where this framework is relevant, then use it as a lens to evaluate your options and decisions. The model is most useful when combined with other complementary mental models.

What category does Reactive Devaluation fall under?

Reactive Devaluation falls under the Psychology & Behavior category of mental models. Other models in this category can be found on the Psychology & Behavior hub page.

Why is Reactive Devaluation important?

Reactive Devaluation is important because it provides a structured way to think about problems that would otherwise be approached with intuition alone. Understanding this model helps you avoid common reasoning errors and make better decisions.

Where does Reactive Devaluation come from?

Reactive Devaluation is discussed in the tradition of Lee Ross.

Reactive Devaluation Mental Model…

Lee Ross (1995): proposals are devalued because of who proposed them. The same deal from an adversary is worth less than from a neutral party. In mergers, the target's proposal is "overpriced" because it came from them. In negotiations: "I'd reject it if they offered it" — then when they do, we find reasons to reject. The mechanism runs on identity, tribalism, and loss aversion. Conceding feels like losing. Accepting an adversary's offer feels like surrender. The proposal itself doesn't change. The name on the envelope does.

Ross ran the definitive study at Stanford. He took an arms control proposal — real terms, designed by policy experts — and presented it to American participants. One group was told it came from Reagan. Another from neutral academics. A third from Gorbachev. Identical text. Identical concessions. When participants believed it came from Reagan or neutrals, they rated it favorably — reasonable, balanced, worth pursuing. When they believed it came from Gorbachev, they rated it dangerous, one-sided, a trick. The source contaminated the content. The envelope poisoned the letter inside.

This creates a structural paradox in every adversarial interaction. The more generous an adversary's offer, the more suspicious it appears. If your competitor proposes a partnership, it must be predatory. If opposing counsel offers a settlement, it must be a trap. The generosity of the offer becomes evidence of its deceptiveness — because a rational adversary wouldn't give away something valuable unless the giveaway served their interests in a way you haven't yet detected. Reactive devaluation is not healthy skepticism. Skepticism evaluates the terms. Reactive devaluation skips the evaluation and downgrades based on who sent it. The first is analysis. The second is bias wearing the costume of analysis.

Reactive Devaluation

Continue exploring

Popular Mental Models

The Core Idea

This connects to...

Continue exploring

Get playbooks like this in your inbox

Popular Mental Models

The Core Idea

This connects to...