Better I than He: Personal perspective modulates counterfactual processing.

First-person narratives are more attentively and emotionally engaging than third-person narratives. This study examined whether and how personal perspective modulates counterfactual processing. Participants read counterfactual and causal conditionals written from the first-person or third-person perspective (e.g., If/Because I/he had read enough literature before, I/he would have finished my/his thesis easily.), followed by factual consequences that contained a critical word either consistent or inconsistent with preceding contexts (e.g., Therefore, when I/he was about to defend the thesis I/he felt panicked/confident). In both perspectives, inconsistent words showed a prolonged N400 vs. consistent words in the counterfactual condition, but a larger P600 in the causal condition. The critical word showed a larger P600 in the first- than the third-person condition in counterfactual scenarios, but not in causal scenarios. These findings suggest that personal perspective exerts different influences on counterfactual processing, presumably by modulating the amount of attentional resources involved.