The influence of status on satisfaction with relative rewards

Abstract

This study investigates how induced relative status affects satisfaction with different relative payoffs. We find that participants with lower status are more satisfied with disadvantageous payoff inequalities than equal or higher status participants. In contrast, when receiving an advantageous payoff, status does not affect satisfaction. Our findings suggest that relative social status has important implications for the acceptance of income inequalities.

When Do Low Status Individuals Accept Less? The Interaction between Self- and Other-Status during Resource Distribution

“…These two main effects suggest that both self- and other-status affect responses to resource distribution and confirm past studies suggesting that social status affects the acceptance of monetary allocations (Ball et al, 2001; Albrecht et al, 2013; Hu et al, 2014, 2016). Experiment 1 showed that participants were more likely to accept low offers from high status proposers, and this effect was more robust for participants in the low self-status group than in high self-status group.…”

“…In these types of procedures, researchers manipulate the social status of participants by having them complete a rank-inducing task (e.g., trivia quiz, Ball et al, 2001; Albrecht et al, 2013), after which they give the participants a relative rank on the measured dimension in comparison with other participants, which is often indicated using stars (Ball et al, 2001; Zink et al, 2008; Hu et al, 2014, 2016). The use of stars is effective in indicating social status given their pervasive use in online shopping websites, videogames, and the military.…”

“…Past research on social status demonstrates the importance of social status during resource distribution, with low status individuals demanding less in bargaining situations than high status individuals (Ball et al, 2001; Albrecht et al, 2013; Hu et al, 2014, 2016). However, these studies have shortcomings that prevent a comprehensive understanding regarding the interaction between one’s own status and others’ status and its effect on economic decision-making.…”

“…However, these studies have shortcomings that prevent a comprehensive understanding regarding the interaction between one’s own status and others’ status and its effect on economic decision-making. Albrecht et al (2013) measured satisfaction ratings of disadvantageous, equitable, and advantageous payoffs between the participant and another hypothetical participant of inferior, similar, or superior status and found that individuals in inferior status perceived disadvantageous inequality payoffs as more satisfactory than superior status individuals. However, it is unclear to what extent the feelings of satisfaction can directly map onto actual economic decisions.…”

Pulling Rank: Military Rank Affects Hormone Levels and Fairness in an Allocation Experiment

“…Findings gained in economic experiments indicate that expectations of fairness in humans vary greatly in respect of their social status: Status apparently modifies the perception of what is fair or acceptable. In bargaining situations, individuals with lower status are more likely to accept being overreached by higher status individuals than vice versa (Ball et al, 2001; Hu et al, 2014, 2016) Low status individuals are also more satisfied with disadvantageous payoffs than individuals with higher status (Albrecht et al, 2013). Van Prooijen et al (2002) sum it up as follows: people perceive the outcome of an interaction to be fair if they think that they are entitled to that outcome, and social status can determine whether people perceive themselves as entitled to certain outcomes.…”