Are individuals more sensitive to losses than gains in terms of economic growth? We find that measures of subjective well-being are more than twice as sensitive to negative as compared to positive ...economic growth. We use Gallup World Poll data from over 150 countries, BRFSS data on 2.3 million U.S. respondents, and Eurobarometer data that cover multiple business cycles over four decades. This research provides a new perspective on the welfare cost of business cycles, with implications for growth policy and the nature of the long-run relationship between GDP and subjective well-being.
Whether and which university to attend are among the most financially consequential choices most people make. Universities with relatively larger endowments can offer better education experiences, ...which can drive inequality in students’ subsequent outcomes. We first explore three interrelated questions: the current educational inequality across U.S. universities, people’s perceptions of this inequality, and their desired inequality. Educational inequality is large: the top 20% of universities have 80% of the total university endowment wealth while the bottom 20% have around 1%. Studies 1 to 3 demonstrated that people underestimate university endowment inequality and desire more equality. These perceptions and ideals were mostly unaffected by contextual factors (e.g., salience of endowment consequences, distribution range) and were not well explained by participants’ demographics. Finally, Study 4 revealed that learning about current endowment inequality decreased tolerance of the distribution of university wealth. We discuss the implications of awareness of educational inequality for behaviors and educational policies.
Research yields ample evidence that individual's behavior often reflects an apparent concern for moral considerations. A natural way to interpret evidence of such motives using an economic framework ...is to add an argument to the utility function such that agents obtain utility both from outcomes that yield only personal benefits and from acting kindly, honestly, or according to some other notion of "right." Indeed, such interpretations can account for much of the existing empirical evidence. However, a growing body of research at the intersection of psychology and economics produces findings inconsistent with such straightforward, preference-based interpretations for moral behavior. In particular, while people are often willing to take a moral act that imposes personal material costs when confronted with a clear-cut choice between "right" and "wrong," such decisions often seem to be dramatically influenced by the specific contexts in which they occur. In particular, when the context provides sufficient flexibility to allow plausible justification that one can both act egoistically while remaining moral, people seize on such opportunities to prioritize self-interest at the expense of morality. In other words, people who appear to exhibit a preference for being moral may in fact be placing a value on feeling moral, often accomplishing this goal by manipulating the manner in which they process information to justify taking egoistic actions while maintaining this feeling of morality.
Although some have heralded recent political and cultural developments as signaling the arrival of a postracial era in America, several legal and social controversies regarding "reverse racism" ...highlight Whites' increasing concern about anti-White bias. We show that this emerging belief reflects Whites' view of racism as a zero-sum game, such that decreases in perceived bias against Blacks over the past six decades are associated with increases in perceived bias against Whites—a relationship not observed in Blacks' perceptions. Moreover, these changes in Whites' conceptions of racism are extreme enough that Whites have now come to view anti-White bias as a bigger societal problem than anti-Black bias.
Paltering is the active use of truthful statements to convey a misleading impression. Across 2 pilot studies and 6 experiments, we identify paltering as a distinct form of deception. Paltering ...differs from lying by omission (the passive omission of relevant information) and lying by commission (the active use of false statements). Our findings reveal that paltering is common in negotiations and that many negotiators prefer to palter than to lie by commission. Paltering, however, may promote conflict fueled by self-serving interpretations; palterers focus on the veracity of their statements ("I told the truth"), whereas targets focus on the misleading impression palters convey ("I was misled"). We also find that targets perceive palters to be especially unethical when palters are used in response to direct questions as opposed to when they are unprompted. Taken together, we show that paltering is a common, but risky, negotiation tactic. Compared with negotiators who tell the truth, negotiators who palter are likely to claim additional value, but increase the likelihood of impasse and harm to their reputations.
This research provides the first support for a possible psychological universal: Human beings around the world derive emotional benefits from using their financial resources to help others (prosocial ...spending). In Study 1, survey data from 136 countries were examined and showed that prosocial spending is associated with greater happiness around the world, in poor and rich countries alike. To test for causality, in Studies 2a and 2b, we used experimental methodology, demonstrating that recalling a past instance of prosocial spending has a causal impact on happiness across countries that differ greatly in terms of wealth (Canada, Uganda, and India). Finally, in Study 3, participants in Canada and South Africa randomly assigned to buy items for charity reported higher levels of positive affect than participants assigned to buy the same items for themselves, even when this prosocial spending did not provide an opportunity to build or strengthen social ties. Our findings suggest that the reward experienced from helping others may be deeply ingrained in human nature, emerging in diverse cultural and economic contexts.
Four studies document an asymmetry in givers’ and receivers’ evaluations of gifts: Givers underestimate the extent to which receivers perceive partial (but more desirable) gifts to be thoughtful, ...valuable, and worthy of appreciation. Study 1 documents this asymmetry and suggests that givers underestimate the extent to which partial gifts signal thoughtfulness to receivers. Study 2 replicates this asymmetry in the context of a real gift exchange among friends. Study 3 shows that this asymmetry arises because givers believe that purchasing partial gifts is a greater violation of gift-giving norms than do receivers, leading givers to expect that partial gifts will damage receivers’ perceptions of a gift’s value. Study 4 offers an intervention that induces givers to select the (partial) gifts that receivers prefer more than givers expect: framing a gift’s separate components as complete units.
Although people buy counterfeit products to signal positive traits, we show that wearing counterfeit products makes individuals feel less authentic and increases their likelihood of both behaving ...dishonestly and judging others as unethical. In four experiments, participants wore purportedly fake or authentically branded sunglasses. Those wearing fake sunglasses cheated more across multiple tasks than did participants wearing authentic sunglasses, both when they believed they had a preference for counterfeits (Experiment Ia) and when they were randomly assigned to wear them (Experiment Ib). Experiment 2 shows that the effects of wearing counterfeit sunglasses extend beyond the self, influencing judgments of other people's unethical behavior. Experiment 3 demonstrates that the feelings of inauthenticity that wearing fake products engenders—what we term the counterfeit self-mediate the impact of counterfeits on unethical behavior. Finally, we show that people do not predict the impact of counterfeits on ethicality; thus, the costs of counterfeits are deceptive.
Technological innovations have produced robots capable of jobs that, until recently, only humans could perform. The present research explores the psychology of "botsourcing"-the replacement of human ...jobs by robots-while examining how understanding botsourcing can inform the psychology of outsourcing-the replacement of jobs in one country by humans from other countries. We test four related hypotheses across six experiments: (1) Given people's lay theories about the capacities for cognition and emotion for robots and humans, workers will express more discomfort with botsourcing when they consider losing jobs that require emotion versus cognition; (2) people will express more comfort with botsourcing when jobs are framed as requiring cognition versus emotion; (3) people will express more comfort with botsourcing for jobs that do require emotion if robots appear to convey more emotion; and (4) people prefer to outsource cognition- versus emotion-oriented jobs to other humans who are perceived as more versus less robotic. These results have theoretical implications for understanding social cognition about both humans and nonhumans and practical implications for the increasingly botsourced and outsourced economy.