The Psychological Consequences of Money

Shame for money: Shame enhances the incentive value of economic resources – Retracted

Shame leads to devaluation of the social self, and thus to a desire to improve self-esteem. Money, which is related to the notion of one’s ability, may help people demonstrate competence and gain self-esteem and respect from others. Based on the perspectives of feelings-as-information and threatened ego, we tested the hypothesis that a sense of shame heightens the desire for money, prompting self-interested behaviors as reflected by monetary donations and social value orientation. The results showed that subjects in the shame condition donated less money (Experiment 1) and exhibited more self-interested choices in the modified decomposed game (Experiment 2). The desire for money as reflected in overestimated coin sizes mediated the effect of shame on self-interested behavior. Our findings suggest that shame elicits the desire to acquire money to amend the threatened social self and improve self-esteem; however, it may induce a self-interested inclination that could harm social relationships.

Status, race, and money: the impact of racial hierarchy on willingness to pay

A deeply entrenched status hierarchy in the United States classifies African Americans as lower status than Caucasians. Concurrently, African Americans face marketplace discrimination; they are treated as inferior and poor. Because having money and spending money signify status, we explored whether African Americans might elevate their willingness to pay for products in order to fulfill status needs. In Studies 1 and 2, explicit activation of the race concept led some African Americans to pay more than they would otherwise pay and also more than Caucasians. Individual differences in perceived status disadvantage and racial identification moderated this result. In Study 3, when race was salient, an overt status threat (inferior treatment in a purchasing context) similarly led African Americans, but not Caucasians, to pay more than they would otherwise pay. This research illustrates how African Americans whose status is threatened use spending as a way to assert status.

Motivating effort: a theoretical synthesis of the self-sufficiency and two-market theories

We conducted two experimental studies to examine the effect of introducing social and monetary incentives on participants' (1) effort and (2) willingness to participate in a study. We found that extra credit invoked both communal sharing (CS, social reward) and market pricing (MP, monetary reward) schemas, thus leading to higher willingness to participate and greater effort in an experiment compared to an equivalent cash reward. Consistent with the potential combinational nature of different labour markets proposed by the relational theory, our results suggest that the labour market framework of monetary versus social incentive is not mutually exhaustive of all types of incentive, and the combinational effect created by introducing both labour markets may be the best motivator.

Behavioural consequences of imagining intergroup contact with stigmatized outgroups

We investigated whether imagining contact with an outgroup member would change intergroup behaviour. Participants who had imagined a positive interaction with an outgroup member or an unspecified stranger were told that they were about to take part in a discussion task with an outgroup member. They were taken to a room and asked to set out two chairs ready for the discussion while the experimenter left, ostensibly to find the other participant. The distance between the two chairs was then measured. Undergraduate students who imagined talking to an obese individual (Experiment 1) or a Muslim individual (Experiment 2) placed the chairs significantly closer than those in the control condition. They also reported more positive feelings and beliefs regarding Muslims. These findings highlight an important practical application of imagined contact: preparing people for successful face-to-face contact.

Escaping the impulse to immediate gratification: the prospect concept promotes a future-oriented mindset, prompting an inclination towards delayed gratification

People's willingness to postpone receiving an immediate reward in order to gain additional benefits in the future, that is, a tendency to shallow delay discounting, is closely related to one's health, wealth, and happiness. We conducted two experiments investigating how the prospect concept can induce a future-oriented mindset and induce people to behave accordingly. We found that engaging in prospective imagery led the participants to focus on delayed utility over immediate utility in financial decisions (Experiment 1). Participants who received the prospect prime via a scrambled-sentence task decreased their desire to pursue hedonic activities for instant gratification (Experiment 2). Moreover, a state of future orientation mediated the effect of the prospect prime on measures of delayed gratification (Experiments 1 and 2). Thus, reminders of prospect may activate a mindset for future orientation by which delayed gratification is strengthened.

Power Increases Social Distance

Five experiments investigated the effect of power on social distance. Although increased social distance has been suggested to be an underlying mechanism for a number of the effects of power, there is little empirical evidence directly supporting this claim. Our first three experiments found that power increases social distance toward others. In addition, these studies demonstrated that this effect is (a) mediated by self-sufficiency and (b) moderated by the perceived legitimacy of power—only when power is seen as legitimate, does it increase social distance. The final two studies build off research showing that social distance is linked to decreased altruism and find an interaction between power and legitimacy on willingness to help others. The authors propose that the concept of social distance offers a synthesizing lens that integrates seemingly disparate findings in the power literature and explains how power can both corrupt and elevate.

Discrimination in wealth and power intergroup structures

This study investigated the combined influence of wealth and power on discrimination. Participants ( N = 243) were assigned to a 2 (ingroup wealth: rich/poor) × 2 (ingroup power: dominant/subordinate) × 2 (outgroup target wealth: rich/poor) minimal group study. After personally receiving money depending on their group ascription, participants distributed their personal money to ingroup and outgroup others. Overall, regardless of their wealth or power, participants discriminated against outgroup members. Poor group members discriminated more than rich group members and participants discriminated more when the outgroup was rich than when it was poor. Results suggest that social identity and group interest but not self-interest, explain discriminatory behaviors within wealth and power intergroup structures.

Empathic neural responses to others' pain depend on monetary reward

Human empathy is not merely a resonance with others' physical condition, but is modulated by social factors. Using functional magnetic resonance imaging, the present study demonstrated an increased brain empathic response to others in pain when they received no rather than a large reward, with increments of the ACC, aMCC, insula and postcentral gyrus in the pain matrix and temporoparietal junction. Thus, pain target's financial situation modulated brain empathic responses in the pain matrix based on an understanding of the situation pain target faces.

Oxytocin infusion increases charitable donations regardless of monetary resources

This study examined if the prosocial effects of oxytocin (OT) extend from individuals to a generalized other who is in need. Participants played a series of economic games to earn money and were presented with an opportunity to donate a portion of their earnings to charity. OT did not significantly increase the decision to donate, but among the 36% of participants who did donate, people infused with OT were found to donate 48% more to charity than those given a placebo. The amount of money earned in the experiment had no effect on whether or not a donation was made or the size of a donation. This is the first study showing that OT increases generosity in unilateral exchanges directed toward philanthropic social institutions, as opposed to immediate benefits directed at individuals or groups.

Neural systems underlying aversive conditioning in humans with primary and secondary reinforcers

Money is a secondary reinforcer commonly used across a range of disciplines in experimental paradigms investigating reward learning and decision-making. The effectiveness of monetary reinforcers during aversive learning and associated neural basis, however, remains a topic of debate. Specifically, it is unclear if the initial acquisition of aversive representations of monetary losses depends on similar neural systems as more traditional aversive conditioning that involves primary reinforcers. This study contrasts the efficacy of a biologically defined primary reinforcer (shock) and a socially defined secondary reinforcer (money) during aversive learning and its associated neural circuitry. During a two-part experiment, participants first played a gambling game where wins and losses were based on performance to gain an experimental bank. Participants were then exposed to two separate aversive conditioning sessions. In one session, a primary reinforcer (mild shock) served as an unconditioned stimulus (US) and was paired with one of two colored squares, the conditioned stimuli (CS+ and CS−, respectively). In another session, a secondary reinforcer (loss of money) served as the US and was paired with one of two different CS. Skin conductance responses were greater for CS+ compared to CS− trials irrespective of type of reinforcer. Neuroimaging results revealed that the striatum, a region typically linked with reward-related processing, was found to be involved in the acquisition of aversive conditioned response irrespective of reinforcer type. In contrast, the amygdala was involved during aversive conditioning with primary reinforcers, as suggested by both an exploratory fMRI analysis and a follow-up case study with a patient with bilateral amygdala damage. Taken together, these results suggest that learning about potential monetary losses may depend on reinforcement learning related systems, rather than on typical structures involved in more biologically based fears.

The Unanticipated Interpersonal and Societal Consequences of Choice

Choice makes North Americans feel more in control, free, and independent, and thus has many positive consequences for individuals’ motivation and well-being. We report five studies that uncovered novel consequences of choice for public policy and interpersonal judgments. Studies 1 through 3 found that activating the concept of choice decreases support for policies promoting intergroup equality (e.g., affirmative action) and societal benefits (e.g., reducing environmental pollution), but increases support for policies promoting individual rights (e.g., legalizing drugs). Studies 4 and 5 found that activating the concept of choice increases victim blaming and decreases empathy for disadvantaged people. Study 5 found that choice does not decrease Indians’ empathy for disadvantaged individuals, indicating that the social and interpersonal consequences of choice are likely culture-specific. This research suggests that the well-known positive effects of choice for individuals can be accompanied by an array of previously unexamined and potentially negative outcomes for other people and for society.

Electromyographic activity of hand muscles in a motor coordination game: effect of incentive scheme and its relation with social capital

BACKGROUND

A vast body of social and cognitive psychology studies in humans reports evidence that external rewards, typically monetary ones, undermine intrinsic motivation. These findings challenge the standard selfish-rationality assumption at the core of economic reasoning. In the present work we aimed at investigating whether the different modulation of a given monetary reward automatically and unconsciously affects effort and performance of participants involved in a game devoid of visual and verbal interaction and without any perspective-taking activity.

METHODOLOGY/PRINCIPAL FINDINGS

Twelve pairs of participants were submitted to a simple motor coordination game while recording the electromyographic activity of First Dorsal Interosseus (FDI), the muscle mainly involved in the task. EMG data show a clear effect of alternative rewards strategies on subjects' motor behavior. Moreover, participants' stock of relevant past social experiences, measured by a specifically designed questionnaire, was significantly correlated with EMG activity, showing that only low social capital subjects responded to monetary incentives consistently with a standard rationality prediction.

CONCLUSIONS/SIGNIFICANCE

Our findings show that the effect of extrinsic motivations on performance may arise outside social contexts involving complex cognitive processes due to conscious perspective-taking activity. More importantly, the peculiar performance of low social capital individuals, in agreement with standard economic reasoning, adds to the knowledge of the circumstances that makes the crowding out/in of intrinsic motivation likely to occur. This may help in improving the prediction and accuracy of economic models and reconcile this puzzling effect of external incentives with economic theory.

Cultural Values and the Well-Being of Future Generations: A Cross-National Study

Cultural values may influence the extent to which nations care about the well-being of current and future generations of children. The author used archival data to examine this possibility in a sample of 20 wealthy nations. As predicted, after controlling for national wealth, a general pattern was evident such that the more a nation prioritized Egalitarianism versus Hierarchy values and Harmony versus Mastery values, (a) the higher was children’s well-being in the nation, (b) the more generous were national laws regarding maternal leave, (c) the less advertising was directed at children, and (d) the less CO2 the nation emitted. Potential causal pathways and future research directions are discussed.

Effect of compliance with quality performance measures for heart failure on clinical outcomes in high-risk patients

BACKGROUND

Although effects of the Joint Commission on Accreditation of Healthcare Organizations' (TJC) performance measures on national trends in patient outcomes have been reported, little information exists on the effects of these quality measures on patient outcomes in individual centers caring for high-risk patient populations.

OBJECTIVES

To determine the effects of compliance with TJC core quality measures for heart failure on patient outcomes at a university hospital caring for high-risk patients.

METHODS

We reviewed data collected for TJC in patients admitted with heart failure at a university hospital serving an indigent population in Louisiana. Patients were divided based on compliance with TJC measures into quality-compliant or quality-deficient groups. Of 646 reviewed records, 542, representing 357 patients, were included in the analysis. There were 193 patients in the quality-compliant and 164 in the quality-deficient group. Outcome measures included rate of heart failure admission/year and readmission within 90 days. Multivariate logistic and linear regression analyses were performed to identify independent associations between patient characteristics and heart failure admission.

RESULTS

Multiple linear regression analysis demonstrated higher rates of heart failure admission/year, and multiple logistic regression revealed higher readmissions at 90 days in the quality-compliant group (parameter estimate, 0.203; p = .02; odds ratio, 2.82; 95% confidence interval, 1.46-5.44, respectively).

CONCLUSION

Compliance with TJC quality measures for heart failure at a university hospital in Louisiana was associated with higher readmission rates for heart failure. Several factors may explain this trend, including patient characteristics and focus on national reporting benchmarks rather than patient-centered health care.

Autonomy and Control in Dyads: Effects on Interaction Quality and Joint Creative Performance

Two studies examined interaction quality and joint performance on two creative tasks in unacquainted dyads primed for autonomy or control orientations. It was hypothesized that autonomy-primed dyads would interact more constructively, experience more positive mood, and engage the task more readily, and as a result these dyads would perform better. To test this, Study 1 primed orientation and explored verbal creative performance on the Remote Associates Task (RAT). In Study 2, dyads were primed with autonomy and control orientation and videotaped during two joint creative tasks, one verbal (RAT) and one nonverbal (charades). Videotapes were coded for behavioral indicators of closeness and task engagement. Results showed that autonomy-primed dyads felt closer, were more emotionally and cognitively attuned, provided empathy and encouragement to partners, and performed more effectively. The effects of primed autonomy on creative performance were mediated by interpersonal quality, mood, and joint engagement.

Incentives increase the rate of false but not true secondary confessions from informants with an allegiance to a suspect

One hundred ninety-two students participated in an experimental simulation testing whether incentives would reduce the reluctance of informants to implicate a close other. Half of the students were made to feel interpersonally close to a confederate who either admitted to or denied a misdeed. All students were interrogated and encouraged to sign a secondary confession stating that the confederate had confessed to the misdeed; half were offered an incentive to do so. Contrary to expectations, closeness did not induce reluctance. Instead, the offer of incentive increased the number of participants willing to sign a secondary confession implicating a close other. Further analyses revealed that this increase occurred only for false secondary confessions. Implications for interrogation practices are discussed.

The pursuit of happiness: time, money, and social connection

Does thinking about time, rather than money, influence how effectively individuals pursue personal happiness? Laboratory and field experiments revealed that implicitly activating the construct of time motivates individuals to spend more time with friends and family and less time working-behaviors that are associated with greater happiness. In contrast, implicitly activating money motivates individuals to work more and socialize less, which (although productive) does not increase happiness. Implications for the relative roles of time versus money in the pursuit of happiness are discussed.

Changes in dispositional empathy in American college students over time: a meta-analysis

The current study examines changes over time in a commonly used measure of dispositional empathy. A cross-temporal meta-analysis was conducted on 72 samples of American college students who completed at least one of the four subscales (Empathic Concern, Perspective Taking, Fantasy, and Personal Distress) of the Interpersonal Reactivity Index (IRI) between 1979 and 2009 (total N = 13,737). Overall, the authors found changes in the most prototypically empathic subscales of the IRI: Empathic Concern was most sharply dropping, followed by Perspective Taking. The IRI Fantasy and Personal Distress subscales exhibited no changes over time. Additional analyses found that the declines in Perspective Taking and Empathic Concern are relatively recent phenomena and are most pronounced in samples from after 2000.

Advantaged group members’ reactions to tokenism

Existing research on tokenism has focused exclusively on the disadvantaged group, despite the important role advantaged groups could play in challenging tokenism. This study examines American students’ responses to a university admission policy for African students that produced an open, closed or tokenism context, when attention was focused on their own or the disadvantaged group. An open context always received higher approval ratings than a completely closed context. However, when attention was focused on the ingroup, tokenism received higher approval ratings than the closed context, whereas, when attention was focused on the outgroup, tokenism was viewed as negatively as the closed context. These findings are discussed in terms of tokenism’s inherent ambiguity and its influence on advantaged group members’ support for change.

Money giveth, money taketh away: the dual effect of wealth on happiness

This study provides the first evidence that money impairs people's ability to savor everyday positive emotions and experiences. In a sample of working adults, wealthier individuals reported lower savoring ability (the ability to enhance and prolong positive emotional experience). Moreover, the negative impact of wealth on individuals' ability to savor undermined the positive effects of money on their happiness. We experimentally exposed participants to a reminder of wealth and produced the same deleterious effect on their ability to savor as that produced by actual individual differences in wealth, a result supporting the theory that money has a causal effect on savoring. Moving beyond self-reports, we found that participants exposed to a reminder of wealth spent less time savoring a piece of chocolate and exhibited reduced enjoyment of it compared with participants not exposed to wealth. This article presents evidence supporting the widely held but previously untested belief that having access to the best things in life may actually undercut people's ability to reap enjoyment from life's small pleasures.

The Accentuation Bias

The present research explores how people’s place in a power hierarchy alters their representations of valued objects. The authors hypothesized that powerlessness produces an accentuation bias by altering the physical representation of monetary objects in a manner consistent with the size-to-value relationship. In the first three experiments, powerless participants, induced through episodic priming or role manipulations, systematically overestimated the size of objects associated with monetary value (i.e., quarters, poker chips) compared to powerful and baseline participants. However, when value was inversely associated with size (i.e., smaller objects were more valuable), the powerless drew these valued objects smaller, not larger. In addition, the accentuation bias by the powerless was more pronounced when the monetary value associated with the object was greater, increased when the object was physically present, and was mediated by differences in subjective value. These findings suggest that powerlessness fosters compensatory processes that guide representations of valued objects.

Medium of exchange matters: what's fair for goods is unfair for money

Organized groups face a fundamental problem of how to distribute resources fairly. We found people view it as less fair to distribute resources equally when the allocated resource invokes the market by being a medium of exchange than when the allocated resource is a good that holds value in use. These differences in fairness can be attributed to being a medium of exchange, and not to other essential properties of money (i.e., being a unit of account or a store of value). These findings suggest that egalitarian outcomes have a greater likelihood of being accepted as fair when the resources being distributed take the form of in-kind goods rather than of cash transfers.

How different types of participant payments alter task performance

Researchers typically use incentives (such as money or course credit) in order to obtain participants who engage in the specific behaviors of interest to the researcher. There is, however, little understanding or agreement on the effects of different types and levels of incentives used. Some results in the domain of statistical reasoning suggest that performance differences — previously deemed theoretically important — may actually be due to differences in incentive types across studies. 704 participants completed one of five variants of a statistical reasoning task, for which they received either course credit, flat fee payment, or performance-based payment incentives. Successful task completion was more frequent with performance-based incentives than with either of the other incentive types. Performance on moderately difficult tasks (compared to very easy and very hard tasks) was most sensitive to incentives. These results can help resolve existing debates about inconsistent findings, guide more accurate comparisons across studies, and be applied beyond research settings.

Pay for performance: quality- and value-based reimbursement

There is urgent need to reform health care reimbursement models, including physician compensation, to address high health care costs, despite numerous quality initiatives. Pay for performance (P4P) is a model that attempts to align financial incentives with better outcomes and value rather than the current system of rewarding volume and intensity of care delivered. P4P has been implemented in other countries besides the United States and is perhaps most advanced in the United Kingdom. Measurement for P4P is evolving, as are the types of incentives; neither is perfect at this time. For P4P to succeed, all health care stakeholders will need to collaborate.

The Symbolic Power of Money

People often get what they want from the social system, and that process is aided by social popularity or by having money. Money can thus possibly substitute for social acceptance in conferring the ability to obtain benefits from the social system. Moreover, past work has suggested that responses to physical pain and social distress share common underlying mechanisms. Six studies tested relationships among reminders of money, social exclusion, and physical pain. Interpersonal rejection and physical pain caused desire for money to increase. Handling money (compared with handling paper) reduced distress over social exclusion and diminished the physical pain of immersion in hot water. Being reminded of having spent money, however, intensified both social distress and physical pain.

Infrastructural requirements for local implementation of safety policies: the discordance between top-down and bottom-up systems of action

BACKGROUND

Safety promotion is planned and practised not only by public health organizations, but also by other welfare state agencies, private companies and non-governmental organizations. The term 'infrastructure' originally denoted the underlying resources needed for warfare, e.g. roads, industries, and an industrial workforce. Today, 'infrastructure' refers to the physical elements, organizations and people needed to run projects in different societal arenas. The aim of this study was to examine associations between infrastructure and local implementation of safety policies in injury prevention and safety promotion programs.

METHODS

Qualitative data on municipalities in Sweden designated as Safe Communities were collected from focus group interviews with municipal politicians and administrators, as well as from policy documents, and materials published on the Internet. Actor network theory was used to identify weaknesses in the present infrastructure and determine strategies that can be used to resolve these.

RESULTS

The weakness identification analysis revealed that the factual infrastructure available for effectuating national strategies varied between safety areas and approaches, basically reflecting differences between bureaucratic and network-based organizational models. At the local level, a contradiction between safety promotion and the existence of quasi-markets for local public service providers was found to predispose for a poor local infrastructure diminishing the interest in integrated inter-agency activities. The weakness resolution analysis showed that development of an adequate infrastructure for safety promotion would require adjustment of the legal framework regulating injury data exchange, and would also require rational financial models for multi-party investments in local infrastructures.

CONCLUSION

We found that the "silo" structure of government organization and assignment of resources was a barrier to collaborative action for safety at a community level. It may therefore be overly optimistic to take for granted that different approaches to injury control, such as injury prevention and safety promotion, can share infrastructure. Similarly, it may be unrealistic to presuppose that safety promotion can reach its potential in terms of injury rate reductions unless the critical infrastructure for this is in place. Such an alignment of the infrastructure to organizational processes requires more than financial investments.

Conceptual consumption

As technology has simplified meeting basic needs, humans have cultivated increasingly psychological avenues for occupying their consumption energies, moving from consuming food to consuming concepts; we propose that consideration of such "conceptual consumption" is essential for understanding human consumption. We first review how four classes of conceptual consumption-consuming expectancies, goals, fluency, and regulatory fit-impact physical consumption. Next, we benchmark the power of conceptual consumption against physical consumption, reviewing research in which people forgo positive physical consumption-and even choose negative physical consumption-in order to engage in conceptual consumption. Finally, we outline how conceptual consumption informs research examining both preference formation and virtual consumption, and how it may be used to augment efforts to enhance consumer welfare.