The three stages of counterfactual reasoning are: 1. Identifying the actual event or outcome: This involves recognizing the real-world situation or result that has occurred. 2. Generating a counterfactual event: This stage involves creating a hypothetical event that is contrary to the actual event, considering alternative actions or conditions. 3. Evaluating the counterfactual outcome: In this stage, the alternative outcome resulting from the counterfactual event is assessed, allowing for a deeper understanding of causal relationships and potential consequences.