Traditional theories of self-interest cannot predict when individuals pursue relative and absolute economic outcomes in interdependent decision-making, but we argue that regulatory focus (Higgins, 1997) can. We propose that a concern with security (prevention focus) motivates concerns with social status, leading to the regulation of relative economic outcomes, but a concern with growth (promotion focus) motivates the maximization of opportunities, leading to a focus on absolute outcomes. Two studies supported our predictions; regardless of prosocial or proself motivations, a promotion focus yielded greater concern with absolute outcomes, but a prevention focus yielded greater concern with relative outcomes. Also, Study 3 revealed that a prevention focus led to a greater rejection of a negative relative but positive absolute outcome in an ultimatum game because of concerns with status. This research reveals that apparently opposing orientations to interdependence -equality and relative gain -serve the same self-regulatory purpose: the establishment of security.
Suggested CitationGu, J., Bohns, V. K., & Leonardelli, G. J. (2013
AbstractTraditional theories of self-interest cannot predict when individuals pursue relative and absolute economic outcomes in interdependent decision-making, but we argue that regulatory focus (Higgins, 1997) can. We propose that a concern with security (prevention focus) motivates concerns with social status, leading to the regulation of relative economic outcomes, but a concern with growth (promotion focus) motivates the maximization of opportunities, leading to a focus on absolute outcomes. Two studies supported our predictions; regardless of prosocial or proself motivations, a promotion focus yielded greater concern with absolute outcomes, but a prevention focus yielded greater concern with relative outcomes. Also, Study 3 revealed that a prevention focus led to a greater rejection of a negative relative but positive absolute outcome in an ultimatum game because of concerns with status. This research reveals that apparently opposing orientations to interdependence -equality and relative gain -serve the same selfregulatory purpose: the establishment of security.
Words: 149Keywords: regulatory focus, economic outcomes, relative value, absolute value, interdependence, social orientations Regulatory Focus and Economic Interdependence 3
Regulatory Focus and Interdependent Economic Decision-MakingThe economics literature largely assumes that individuals seek to maximize absolute economic outcomes. As John Stuart Mill (1874/1968) asserted, individuals generally pursue "the greatest amount of necessaries, conveniences, and luxuries" (p. 144). From this perspective, deviations from maximizing absolute outcomes are irrational and non-normative. Yet strikingly, since the first empirical demonstrations (Messick & Thorngate, 1967;Stouffer, Schuman, DeVinney, Star, & Williams, 1949), evidence has established that individuals also seek to regulate relative economic outcomes (i.e., the diff...