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Money and flexible generosity.

Xijing Wang1, Zhansheng Chen1, Eva G Krumhuber2

  • 1Department of Psychology, The University of Hong Kong, Hong Kong.

The British Journal of Social Psychology
|February 19, 2021
PubMed
Summary

Money can reduce generosity, but not when egoistic motives like reputation or avoiding sanctions are involved. Prosociality is flexible, especially when money is imbued with positive meaning.

Keywords:
egoistic and altruistic motivesgenerositymonetary incentivemoneyprosociality

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Area of Science:

  • Social Psychology
  • Behavioral Economics

Background:

  • Previous research indicates money generally decreases generosity.
  • The impact of money on prosocial behavior may depend on underlying motives.

Purpose of the Study:

  • To investigate if money impairs generosity differently based on altruistic versus egoistic motives.
  • To explore the role of experimental currency (money vs. non-monetary goods) in prosocial decision-making.

Main Methods:

  • Utilized economic games, including the Dictator game, to assess generosity.
  • Varied the experimental currency to be either money or candy/food across three studies with 850 participants.

Main Results:

  • Money reduced generosity when others were not crucial for personal gain.
  • Generosity remained unaffected when egoistic motives (e.g., reputation, avoiding sanctions) were present.
  • Participants exhibited flexible prosociality, adjusting generosity based on game type and currency, particularly when money was imbued with prosocial meaning.

Conclusions:

  • Money's negative impact on generosity is context-dependent, particularly moderated by egoistic motivations.
  • Prosociality is flexible and can be influenced by the meaning attributed to monetary or non-monetary rewards.