Final answer:
The approach described is the happiness approach, where happy individuals tend to be satisfied with all options, while unhappy individuals convince themselves that what they chose or received was mediocre but that the options they were denied were worse.
Step-by-step explanation:
The approach described in the question is an example of the happiness approach. Happy individuals tend to be satisfied with all options, even those they didn't choose or receive. This approach is characterized by retrospective evaluations where happy people find satisfaction in all options, while unhappy individuals reduce dissonance by convincing themselves that what they chose or received was mediocre but that the options they were denied were worse.
For example, in college admissions, a happy person may be satisfied with the college they were admitted to, as well as the ones they were not admitted to, believing that all options would have provided them with a good education and opportunities. On the other hand, an unhappy person may convince themselves that the college they were admitted to was mediocre, but the colleges they were denied admission to were much worse.