Four studies examined how the characteristics of others affect people's self-appraisals. Ss viewed photographs of physically attractive or unattractive targets, then rated their own attractiveness. Study 1 found evidence for a contrast effect: Ss'self-appraisals were more favorable after viewing an unattractive same-sex target than after viewing an attractive same-sex target. Study 2 manipulated psychological closeness by varying the degree to which the S and the target shared similar attitudes and values. Although contrast effects occurred when the S and the target were dissimilar, the reverse tended to be true when the S and the target were related by virtue of their perceived similarity. Two additional studies extended these results, using a different operational definition of psychological closeness. The findings indicate that psychological closeness determines how other people's characteristics affect the self-concept.