Five studies tested the hypothesis that people living in more diverse neighborhoods would have more inclusive identities, and would thus be more prosocial. Study 1 found that people residing in more racially diverse metropolitan areas were more likely to tweet prosocial concepts in their everyday lives. Study 2 found that following the 2013 Boston Marathon bombings, people in more racially diverse neighborhoods were more likely to spontaneously offer help to individuals stranded by the bombings. Study 3 found that people living in more ethnically diverse countries were more likely to report having helped a stranger in the past month. Providing evidence of the underlying mechanism, Study 4 found that people living in more racially diverse neighborhoods were more likely to identify with all of humanity, which explained their greater likelihood of having helped a stranger in the past month. Finally, providing causal evidence for the relationship between neighborhood diversity and prosociality, Study 5 found that people asked to imagine that they were living in a more racially diverse neighborhood were more willing to help others in need, and this effect was mediated by a broader identity. The studies identify a novel mechanism through which exposure to diversity can influence people, and document a novel consequence of this mechanism. (PsycINFO Database Record
Organizations often keep secret their decisions about what employees receive (e.g., salary, budgets, benefits) to manage fairness concerns. We propose that this can be counterproductive because of a mechanism we call the “escalation of deservingness under secrecy,” where the existence of peers can inflate one’s own sense of deservingness, even when the actual allocations to peers are unknown. Building on the ultimatum game, we developed a paired ultimatum game (PUG) in which a player and a peer respondent engage with the same offeror simultaneously but with no direct competition between respondents. Across three experiments—a live interaction study as well as two scenario studies—using the PUG, we analyze the conditions under which transparency may be better than secrecy in preventing the escalation of deservingness perceptions.
Research summary
We investigate entrepreneurial network activation—the processes by which entrepreneurs select specific contacts from their existing personal network and persuade the selected contacts to provide referrals to access targeted early‐stage investors (venture capitalists or angel‐investors). We differentiate between selection of entrepreneur‐centric contacts versus investor‐centric contacts. We also distinguish between persuasion tactics that induce contacts' cooperation through promises of reciprocity versus offers of monetary incentives. We conducted two field‐experiments in India and one in Singapore. Our primary field‐experiment involved 42 Singapore‐based entrepreneurs seeking referrals from 684 network contacts to reach a panel of four investors. Our evidence suggests that selecting investor‐centric contacts leads to greater referral success; in addition, persuasion by promising reciprocity also leads to greater referral success.
Managerial summary
A vital first‐step for resource‐starved entrepreneurs seeking funding for their scalable business‐idea is to obtain referrals to early‐stage investors, because such investors pay more attention to referrals from trusted contacts. Using field‐experiments, we examine how entrepreneurs' choices in selecting network contacts and persuading them to provide referrals drive their access to investors. Results suggest that compared with the habitual pattern of requesting referrals from contacts proximate to themselves, entrepreneurs are about six times more likely to secure successful referrals when they select investor‐centric contacts for referral requests. Furthermore, actively persuading contacts by promising future reciprocity results in about three times higher likelihood of securing successful referrals. Our findings show how thoughtful activation of existing contacts can enable even modestly connected entrepreneurs to gain investor access.
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