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Profit maximization versus disadvantageous inequality: the impact of self‐categorization
Author(s) -
Garcia Stephen M.,
Tor Avishalom,
Bazerman Max H.,
Miller Dale T.
Publication year - 2005
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/bdm.494
Subject(s) - categorization , profit maximization , maximization , social psychology , profit (economics) , psychology , interpersonal communication , ingroups and outgroups , stochastic game , microeconomics , inequality , economics , computer science , mathematics , artificial intelligence , mathematical analysis
Choice behavior researchers (e.g., Bazerman, Loewenstein, & White, 1992) have found that individuals tend to choose a more lucrative but disadvantageously unequal payoff (e.g., self—$600/other—$800) over a less profitable but equal one (e.g., self—$500/other—$500); greater profit trumps interpersonal social comparison concerns in the choice setting. We suggest, however, that self‐categorization (e.g., Hogg, 2000) can shift interpersonal social comparison concerns to the intergroup level and make trading disadvantageous inequality for greater profit more difficult. Studies 1–3 show that profit maximization diminishes when recipients belong to different social categories (e.g., genders, universities). Study 2 further implicates self‐categorization, as self‐categorized individuals tend to forgo profit whether making a choice for themselves or another ingroup member. Study 3, moreover, reveals that social categorization alone is not sufficient to diminish profit maximization; individuals must self‐categorize and identify with their categorization. Copyright © 2005 John Wiley & Sons, Ltd.