On assets and debt in the psychology of perceived wealth

We studied the perception of wealth as a function of varying levels of assets and debt. We found that with total wealth held constant, people with positive net worth feel and are seen as wealthier when they have lower debt (despite having fewer assets). In contrast, people with equal but negative net worth feel and are considered wealthier when they have greater assets (despite having larger debt). This pattern persists in the perception of both the self and others. We explore consequences for the willingness to borrow and lend and briefly discuss the policy implications of these findings.     

The Martyrdom Effect: When Pain and Effort Increase Prosocial Contributions

Most theories of motivation and behavior (and lay intuitions alike) consider pain and effort to be deterrents. In contrast to this widely held view, we provide evidence that the prospect of enduring pain and exerting effort for a prosocial cause can promote contributions to the cause. Specifically, we show that willingness to contribute to a charitable or collective cause increases when the contribution process is expected to be painful and effortful rather than easy and enjoyable. Across five experiments, we document this “martyrdom effect,” show that the observed patterns defy standard economic and psychological accounts, and identify a mediator and moderator of the effect. Experiment 1 showed that people are willing to donate more to charity when they anticipate having to suffer to raise money. Experiment 2 extended these findings to a non‐charity laboratory context that involved real money and actual pain. Experiment 3 demonstrated that the martyrdom effect is not the result of an attribute substitution strategy (whereby people use the amount of pain and effort involved in fundraising to determine donation worthiness). Experiment 4 showed that perceptions of meaningfulness partially mediate the martyrdom effect. Finally, Experiment 5 demonstrated that the nature of the prosocial cause moderates the martyrdom effect: the effect is strongest for causes associated with human suffering. We propose that anticipated pain and effort lead people to ascribe greater meaning to their contributions and to the experience of contributing, thereby motivating higher prosocial contributions. We conclude by considering some implications of this puzzling phenomenon. Copyright © 2011 John Wiley & Sons, Ltd.     

Plasticity in attention: implications for stress response in children

Attention bias has been suggested as an etiological and maintaining factor in anxiety. However, empirical evidence establishing this causal association is scarce and has been provided only in adults. In this preliminary study, we tested whether an induction of attentional bias can cause changes in vulnerability to stress in children reporting normal anxiety levels. Twenty-six 7-12 year-old children were randomly assigned to two groups. One group was exposed to a training condition designed to induce an attentional bias away from threat. The other group was exposed to a training condition designed to induce an attentional bias toward threat. Children who were trained to attend to threat developed attentional vigilance to threat-related information. The training procedure was ineffective with children who were trained to avoid threat, and their attention remained unbiased. Children from both training groups reported elevated depression scores following stress-induction. However, only the children who were trained to attend to threat subsequently reported elevations in anxiety. The findings suggest that biased attentional responses to threat, among children, can exert a specific influence on the tendency to experience anxiety in the face of stress.     

The long and short of it: physical anchoring effects

Attempts to reconstruct the magnitude of recently encountered physical stimuli were influenced by the provision of physical anchors. Whether estimating length, weight, or loudness, those increasing the magnitude of a relatively small (short, light, or quiet) physical anchor produced estimates that were reliably lower than did those decreasing the magnitude of a relatively large (long, heavy, or loud) anchor. Estimates produced without an anchor were also low, suggesting that when people physically adjust upwards from a self‐selected starting point, “no anchor” may, in fact, act as a very low anchor. Physical anchors appear to influence estimates of recently encountered physical stimuli, much as numerical anchors influence estimates of more abstract numerical quantities. Implications for processes underlying anchoring, adjustment, and related tasks are discussed. Copyright © 2006 John Wiley & Sons, Ltd.     

Choosing versus rejecting: Why some options are both better and worse than others

A previously unobserved pattern of choice behavior is predicted and corroborated. In line with the principle of compatibility, according to which the weighting of inputs is enhanced by their compatibility with output, the positive and negative dimensions of options (their pros and cons) are expected to loom larger when one is choosing and when one is rejecting, respectively. Subjects are presented with pairs of options, one of which—theenriched option—has more positive as well as more negative dimensions than does the other,impoverished, option. Because positive dimensions are weighted more heavily in choosing than in rejecting, and negative dimensions are weighted more heavily in rejecting than in choosing, the enriched option tends to be chosen and rejected relatively more often than the impoverished option. These findings are extended to nonbinary decision problems, and their implications for the rational theory of choice and for everyday decisions are discussed.     

The conflicting choices of alternating selves

Participants made choices after the salience of their social identities was manipulated. Choices assimilated to the salient identity, whether that identity stemmed from a person’s role (e.g., student, family member) or culture (e.g., Chinese, American). Thus, the preferences that participants expressed depended on the identity that happened to be salient at the moment of choice, with participants expressing preferences when one identity was salient that conflicted with the preferences they would express were another identity salient. These effects only arose for those who held and identified with the evoked identity. Studies further revealed that such identity-congruent choices influence post-choice satisfaction and regret: participants were less satisfied with their prior choices when the identity salient during post-choice evaluation or consumption was different from the identity salient during choice, compared to when the “choosing” and “consuming” identities were the same. Implications of the findings are discussed.     

Effects of divided attention at encoding and retrieval: Further data

Division of attention (DA) at the time of learning has large detrimental effects on subsequent memory performance, but DA at retrieval has much smaller effects (Baddeley, Lewis, Eldridge, & Thomson, 1984, Journal of Experimental Psychology: General, 113, 518–540; Craik, Govoni, Naveh-Benjamin, & Anderson, 1996, Journal of Experimental Psychology: General, 125, 159–180). Experiment 1 confirmed the relatively small effects of DA on retrieval and also showed that retrieval operations do consume processing resources. The experiment also found that the effect is not attributable to a trade-off in performance with the concurrent task or to recognition decisions made on the basis of familiarity judgments. Participants made levels-of-processing (LOP) judgments during encoding to check whether deeper semantic judgments were differentially vulnerable to the effects of DA. In fact DA did not interact with LOP. Experiment 2 explored reports that the comparatively slight effect of DA on recognition accuracy is accompanied by a compensatory increase in recognition latency (Baddeley et al., 1984). The experiment replicated findings that neither DA nor differential emphasis between recognition and a concurrent continuous reaction time (CRT) task affected recognition accuracy, but also found evidence for a lawful trade-off in decision latencies between recognition and CRT performance. Further analysis showed that the relationship between response rates on the two tasks was well described by a linear function, and that this function was demonstrated by the majority of individual participants. It is concluded that the small effect of DA on recognition performance is attributable to a trade-off within the recognition task itself; accuracy is maintained by a compensatory increase in decision latency.     

Uncertainty and the difficulty of thinking through disjunctions

This paper considers the relationship between decision under uncertainty and thinking through disjunctions. Decision situations that lead to violations of Savage's sure-thing principle are examined, and a variety of simple reasoning problems that often generate confusion and error are reviewed. The common difficulty is attributed to people's reluctance to think through disjunctions. Instead of hypothetically traveling through the branches of a decision tree, it is suggested, people suspend judgement and remain at the node. This interpretation is applied to instances of decision making, information search, deductive and inductive reasoning, probabilistic judgement, games, puzzles and paradoxes. Some implications of the reluctance to think through disjunctions, as well as potential corrective procedures, are discussed.