An Exchange Theory of Money and Self-Esteem in Decision Making

Review of General Psychology

Volumn 13, Issue 1, 2009, Pages 66-76

  Zhang, Liqing ^a  

^a PEKING UNIVERSITY   (China)

Author keywords

decision making; exchange; money; self esteem; utility

Indexed keywords

EID: 64349111530     PISSN: 10892680     EISSN: None     Source Type: Journal    
DOI: 10.1037/a0014225     Document Type: Article

References (114)

1. Adler A. The practice and theory of individual psychology. 2nd ed., rev. (1924), Humanities Press, Oxford, England
2. Batson C.D. Prosocial motivation: Is it ever truly altruistic?. In: Berkowitz L. (Ed). Advances in experimental social psychology 20 (1987), Academic Press, New York 65-122
3. Batson C.D. The altruism question: Toward a social psychological answer (1991), Erlbaum, Hillsdale, NJ
4. Baumeister R.F. How the self became a problem: A psychological review of historical research. Journal of Personality and Social Psychology 52 (1987) 163-176
5. Baumeister R.F. The self. In: Gilbert G.T., Fiske S.T., and Lindzey G. (Eds). The handbook of social psychology. 4th ed. 1 (1998), Oxford University Press, New York 680-740
6. Baumeister R.F. The cultural animal: Human nature, meaning, and social life (2005), Oxford University Press, New York
7. Baumeister R.F., Dale K., and Sommer K.L. Freudian defense mechanisms and empirical findings in modern social psychology: Reaction formation, projection, displacement, undoing, isolation, sublimation, and denial. Journal of Personality 66 (1998) 1081-1124
8. Baumeister R.F., and Leary M.R. The need to belong: Desire for interpersonal attachments as a fundamental human motivation. Psychological Bulletin 117 (1995) 497-529
9. Baumeister R.F., Smart L., and Boden J.M. Relation of threatened egotism to violence and aggression: The dark side of high self-esteem. Psychological Review 103 (1996) 5-33
10. Bazerman M.H., Giuliano T., and Appelman A. Escalation in individual and group decision making. Organizational Behavior and Human Performance 33 (1984) 142-152
11. Beggan J.K. On the social nature of nonsocial perception: The mere ownership effect. Journal of Personality and Social Psychology 62 (1992) 229-237
12. Belk R.W. Possessions and the extended self. Journal of Consumer Research 15 (1988) 139-168
13. Bentham J. An introduction to the principles of morals and legislation (1907), Clarendon Press, Oxford, England (Original work published 1789)
14. Blanchflower D., and Oswald A. Well-being over time in Britain and the USA. Journal of Public Economics 88 (2004) 1359-1386
15. Blount S. When social outcomes aren't fair: The effect of causal attributions on preferences. Organizational Behavior and Human Decision Processes 63 (1995) 133-144
16. Brockner J., Houser R., Birnbaum G., Lloyd K., Deitcher J., Nathanson S., et al. Escalation of commitment to an ineffective course of action: The effect of feedback having negative implications for self-identity. Administrative Science Quarterly 31 (1986) 109-126
17. Brockner J., and Rubin J.Z. Entrapment in escalating conflicts: A social psychological analysis (1985), Springer-Verlag, New York
18. Brown G.D.A., Gardner J., Oswald A.J., and Qian J. Does wage rank affect employees' wellbeing? (Institute for the Study of Labor Discussion Paper No. 1505) (2005), Institute for the Study of Labor, Bonn, Germany
19. Bushman B.J., and Baumeister R.F. Threatened egotism, narcissism, self-esteem, and direct and displaced aggression: Does self-love or self-hate lead to violence?. Journal of Personality and Social Psychology 75 (1998) 219-229
20. Clark A., and Oswald A. Satisfaction and comparison income. Journal of Public Economics 61 (1996) 359-381
21. Clark A.E., and Oswald A.J. Unhappiness and unemployment. Economic Journal 104 (1994) 648-659
22. Cohen G.L., Aronson J., and Steel C.M. When beliefs yield to evidence: Reducing biased evaluation by affirming the self. Personality and Social Psychology Bulletin 26 (2000) 1151-1164
23. Crocker J., and Park L.E. The costly pursuit of self-esteem. Psychological Bulletin 130 (2004) 392-414
24. Crocker J., and Wolfe C.T. Contingencies of self-worth. Psychological Review 108 (2001) 593-623
25. Darity W., and Goldsmith A. Social psychology, unemployment and macroeconomics. Journal of Economic Perspectives 10 (1996) 121-140
26. Deci E.L., Koestner R., and Ryan R.M. A meta-analytic review of examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin 125 (1999) 627-668
27. Deci E.L., and Ryan R.M. Intrinsic motivation and self-determination in human behavior (1985), Plenum Press, New York
28. Deci E.L., and Ryan R.M. The "what" and the "why" of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry 11 (2000) 227-268
29. Diekmann K.A., Samuels S.M., Ross L., and Bazerman M.H. Self-interest and fairness in problems of resource allocation: Allocators versus recipients. Journal of Personality and Social Psychology 72 (1997) 1061-1074
30. Diener E., Suh E.M., Lucas R.E., and Smith H.L. Subjective well-being: Three decades of progress. Psychological Bulletin 125 (1999) 276-302
31. Di Tella R., MacCulloch R., and Oswald A. Preferences over inflation and unemployment: Evidence from surveys of happiness. American Economic Review 91 (2001) 335-341
32. Easterlin R. Does money buy happiness?. Public Interest 30 (1973) 3-10
33. Easterlin R. Will raising the incomes of all increase the happiness of all?. Journal of Economic Behavior and Organization 27 (1995) 35-48
34. Easterlin R. Income and happiness: Towards a unified theory. The Economic Journal 111 (2001) 465-484
35. Eckel C.C., and Grossman P.J. Altruism in anonymous dictator games. Games and Economic Behavior 16 (1996) 181-191
36. Festinger L. A theory of social comparison processes. Human Relations 7 (1954) 117-140
37. Festinger L. A theory of cognitive dissonance (1957), Row, Peterson, Oxford, England
38. Fisher R., and Ury W. Getting to yes: Negotiating agreement without giving in. 2nd ed. (1991), Penguin Books, New York
39. Freud A. Ego and the mechanisms of defence (1937), Hogarth Press, London
40. Freud, S. (1961). An autobiographical study; inhibitions, symptoms and anxiety; lay analysis; and other works. In J. Strachey (Ed. & Trans.), The standard edition of the complete psychological works of Sigmund Freud (Vol. 20, pp. 87-172). London: Hogarth Press. (Original work published 1925-1926)
41. Frey B.S., and Stutzer A. What can economists learn from happiness research?. Journal of Economic Literature 40 (2002) 402-435
42. Furnham A. Many sides of the coin: The psychology of money usage. Personality and Individual Differences 5 (1984) 501-509
43. Greenwald A.G. The totalitarian ego: Fabrication and revision of personal history. American Psychologist 35 (1980) 603-618
44. Güth W. On ultimatum bargaining experiments-A personal review. Journal of Economic Behavior and Organization 27 (1995) 329-344
45. Güth W., Schmittberger R., and Schwarze B. An experimental analysis of ultimatum bargaining. Journal of Economic Behavior and Organization 3 (1982) 367-388
46. Heine S.J. Where is the evidence for pancultural self-enhancement? A reply to Sedikides, Gaertner, and Toguchi (2003). Journal of Personality and Social Psychology 89 (2005) 531-538
47. Heine S.J., Lehman D.R., Markus H.R., and Kitayama S. Is there a universal need for positive self-regard?. Psychological Review 106 (1999) 766-794
48. Henderlong J., and Lepper M.R. The effects of praise on children's intrinsic motivation: A review and synthesis. Psychological Bulletin 128 (2002) 774-795
49. Henrich J. Cooperation, punishment, and the evolution of human institutions. Science 312 (2006, April 7) 60-61
50. Henrich J., Boyd R., Bowles S., Camerer C., et al. "Economic man" in cross-cultural perspective: Behavioral experiments in 15 small scale societies. Behavioral and Brain Sciences 18 (2005) 795-855
51. Henrich J., McElreath R., Barr A., Ensminger J., Barrett C., Bolyanatz A., et al. Costly punishment across human societies. Science 312 (2006, June 23) 1767-1769
52. James S., Jordan B., and Redley M. The wife's employment family fit. In: Lea S.E.G., Webley P., and Young B.M. (Eds). New directions in economic psychology (1992), Edward Elgar, Aldershot, England 243-259
53. James W. The principle of psychology 1 (1890), Harvard University Press, Cambridge, MA
54. Jordan B., James S., Kay H., and Redley M. Trapped in poverty: Labour-market decisions in low-income households (1992), Routledge, London
55. Josephs R.A., Larrick R.P., Steele C.M., and Nisbett R.E. Protecting the self from the negative consequences of risky decisions. Journal of Personality and Social Psychology 62 (1992) 26-37
56. Kahneman D., Knetsch J.L., and Thaler R.H. Experimental tests of the endowment effect and the Coase theorem. Journal of Political Economy 98 (1990) 1325-1348
57. Kennedy W.A., and Willcutt H.C. Praise and blame as incentives. Psychological Bulletin 62 (1964) 323-332
58. Kernis M.H., and Waschull S.B. The interactive roles of stability and level of self-esteem: Research and theory. In: Zanna M.P. (Ed). Advances in experimental social psychology 27 (1995), Academic Press, San Diego, CA 93-141
59. Koszegi B. Ego utility, overconfidence, and task choice. Journal of the European Economic Association 4 (2006) 673-707
60. Kravitz D., and Gunto S. Decisions and recipients in ultimatum bargaining games. Journal of Socio-Economics 21 (1992) 65-84
61. Krebs D.L. Altruism: An examination of the concept and a review of the literature. Psychological Bulletin 73 (1970) 258-302
62. Larrick R.P. Motivational factors in decision theories: The role of self-protection. Psychological Bulletin 113 (1993) 440-450
63. Lea S.E.G., and Webley P. Pride in economic psychology. Journal of Economic Psychology 18 (1997) 323-340
64. Lea S.E.G., and Webley P. Money as tool, money as drug: The biological psychology of a strong incentive. Behavioral and Brain Sciences 29 (2006) 161-209
65. Leary M.R., and Baumeister R.F. The nature and function of self-esteem: Sociometer theory. In: Zanna M.P. (Ed). Advances in experimental social psychology 32 (2000), Academic Press, San Diego, CA 1-62
66. Lepper M.R., Greene D., and Nisbett R.E. Undermining children's intrinsic interest with extrinsic rewards: A test of the "overjustification" hypothesis. Journal of Personality and Social Psychology 28 (1973) 129-137
67. Loewenstein G. Because it is there: The challenge of mountaineering for utility theory. Kyklos 52 (1999) 315-343
68. Luttmer E.F.P. Neighbors as negatives: Relative earnings and well-being. Quarterly Journal of Economics 120 (2005) 963-1002
69. Lyubomirsky S., and Ross L. Hedonic consequences of social comparison: A contrast of happy and unhappy people. Journal of Personality and Social Psychology 73 (1997) 1141-1157
70. Maslow A.H. A theory of human motivation. Psychological Review 50 (1943) 370-396
71. Maslow A.H. The further reaches of human nature (1971), Viking, New York
72. McGrade B.J. Effectiveness of verbal reinforcers in relation to age and social class. Journal of Personality and Social Psychology 4 (1966) 555-560
73. Morf C.C., and Rhodewalt F. Unraveling the paradoxes of narcissism: A dynamic self-regulatory processing model. Psychological Inquiry 12 (2001) 177-196
74. Munier B., and Zaharia C. High stakes and acceptance behavior in ultimatum bargaining: A contribution from an international experiment. Theory and Decision 53 (2002) 187-207
75. Oswald A. Happiness and economic performance. Economic Journal 107 (1997) 1815-1831
76. Prince M. Women, men and money styles. Journal of Economic Psychology 14 (1993) 175-182
77. Pruitt D.G. Negotiation behavior (1981), Academic Press, New York
78. Pyszczynski T., Greenberg J., Solomon S., Arndt J., and Schimel J. Why do people need self-esteem? A theoretical and empirical review. Psychological Bulletin 130 (2004) 435-468
79. Raiffa H. The art and science of negotiation (1982), Belknap Press of Harvard University Press, Cambridge, MA
80. Roth A.E. Introduction to experimental economics. In: Roth A.E. (Ed). Handbook of experimental economics (1995), Princeton University Press, Princeton, NJ 1-110
81. Ryan R.M., and Brown K.W. Why we don't need self-esteem: On fundamental needs, contingent love, and mindfulness. Psychological Inquiry 14 (2003) 71-76
82. Schmitt D.P., and Allik J. Simultaneous administration of the Rosenberg Self-Esteem Scale in 53 nations: Exploring the universal and culture-specific features of global self-esteem. Journal of Personality and Social Psychology 89 (2005) 623-642
83. Schroth H.A., and Shah P.P. Procedures: Do we really want to know them? An examination of the effects of procedural justice on self-esteem. Journal of Applied Psychology 85 (2000) 462-471
84. Sedikides C., Gaertner L., and Toguchi Y. Pancultural self-enhancement. Journal of Personality and Social Psychology 84 (2003) 60-79
85. Sedikides C., Gaertner L., and Vevea J.L. Pancultural self-enhancement reloaded: A meta-analytic replay to Heine (2005). Journal of Personality and Social Psychology 89 (2005) 539-551
86. Shamir B., Arthur M.B., and House R.J. The rhetoric of charismatic leadership: A theoretical extension, a case study, and implications for research. Leadership Quarterly 5 (1994) 25-42
87. Shamir B., House R.J., and Arthur M.B. The motivational effects of charismatic leadership: A self-concept based theory. Organization Science 4 (1993) 577-594
88. Shubik M. The dollar auction game: A paradox in noncooperative behavior and escalation. Journal of Conflict Resolution 15 (1971) 109-111
89. Simonson I., and Nye P. The effect of accountability on susceptibility to decision makers. Organizational Behavior and Human Decision Process 51 (1992) 416-446
90. Smith A. The theory of moral sentiments (1976), Liberty Classics, Indianapolis, IN (Original work published 1759)
91. Spear P.S. Motivational effects of praise and criticism on children's learning. Developmental Psychology 3 (1970) 124-132
92. Staw B.M. Knee-deep in the big muddy: A study of escalating commitment to chosen course of action. Organizational Behavior and Human Performance 16 (1976) 27-44
93. Staw B.M. The escalation of commitment to a course of action. Academy of Management Review 6 (1981) 577-587
94. Staw B.M., Barsade S.G., and Koput K.W. Escalation at the credit window: A longitudinal study of bank executives' recognition and write-off of problem loans. Journal of Applied Psychology 82 (1997) 130-142
95. Staw B.M., and Ross J. Behavior in escalation situations: Antecedents, prototypes, and solutions. Research in Organizational Behavior 9 (1987) 39-78
96. Steele C.M. The psychology of self-affirmation: Sustaining the integrity of the self. In: Berkowitz L. (Ed). Advances in experimental social psychology 21 (1988), Academic Press, New York 261-302
97. Steele C.M., Spencer S.J., and Lynch M. Self-image resilience and dissonance: The role of affirmational resources. Journal of Personality and Social Psychology 64 (1993) 885-896
98. Swann Jr. W.B., and Read S.J. Self-verification: How we sustain our self-conceptions. Journal of Experimental Social Psychology 17 (1981) 351-372
99. Tang T.L.P. The development of a short money ethic scale: Attitudes toward money and pay satisfaction revisited. Personality and Individual Differences 19 (1995) 809-816
100. Taylor S.E., and Brown J.D. Illusion and well-being: A social psychological perspective on mental health. Psychological Bulletin 103 (1988) 193-210
101. Teger A.I. Too much invested to quit (1980), Pergamon Press, Elmsford, NY
102. Tesser A. Toward a self-evaluation maintenance model of social behavior. In: Berkowitz L. (Ed). Advances in experimental social psychology. Vol. 21: Social psychological studies of the self: Perspectives and programs (1988), Academic Press, San Diego, CA 181-227
103. Tesser A., Martin L.L., and Cornell D.P. On the substitutability of self-protective mechanisms. In: Gollwitzer P.M., and Bargh J.A. (Eds). The psychology of action: Linking cognition and motivation to behavior (1996), Guilford Press, New York 48-68
104. Thaler R.H. Anomalies: The ultimatum game. Journal of Economic Perspectives 2 (1988) 195-206
105. von Neumann J., and Morgenstern O. Theory of games and economic behavior (1944), Princeton University Press, Princeton, NJ
106. Walster E., Berscheid E., and Walster G.W. New directions in equity research. In: Berkowitz L., and Walster E. (Eds). Advances in experimental social psychology. Vol. 9: Equity theory: Toward a general theory of social interaction (1976), Academic Press, San Diego, CA 1-42
107. White R.W. Adler and the future of ego psychology. Journal of Individual Psychology 13 (1957) 112-124
108. White R.W. Motivation reconsidered: The concept of competence. Psychological Review 66 (1959) 297-333
109. Wiesenfeld B.M., Brockner J., and Thibault V. Procedural fairness, managers' self-esteem, and managerial behaviors following a layoff. Organizational Behavior and Human Decision Processes 83 (2000) 1-32
110. Wills T.A. Downward comparison principles in social psychology. Psychological Bulletin 90 (1981) 245-271
111. Yamauchi K.T., and Templer D.I. The development of a Money Attitudes Scale. Journal of Personality Assessment 46 (1982) 522-528
112. Zhang L. The augmentation, substitution and competition between money and self-esteem (2008). http://www.psy.pku.edu.cn/faculty.php?fid=34 &pub Retrieved December 28, 2008, from http://www.psy.pku.edu.cn/faculty.php?fid=34&pub
113. Zhang L., and Baumeister R.F. Your money or your self-esteem: Threatened egotism promotes costly entrapment in losing endeavors. Personality and Social Psychology Bulletin 32 (2006) 881-893
114. Zhang L., and Baumeister R.F. Self-esteem boost promotes negotiators' rational decisions in disadvantageous situations (2008) (Working Paper). Peking University