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Profit maximization versus disadvantageous inequality: the impact of self‐categorization
Authors:Stephen M. Garcia  Avishalom Tor  Max H. Bazerman  Dale T. Miller
Abstract:Choice behavior researchers (e.g., Bazerman, Loewenstein, & White, 1992 ) have found that individuals tend to choose a more lucrative but disadvantageously unequal payoff (e.g., self—$600/other—$800) over a less profitable but equal one (e.g., self—$500/other—$500); greater profit trumps interpersonal social comparison concerns in the choice setting. We suggest, however, that self‐categorization (e.g., Hogg, 2000 ) can shift interpersonal social comparison concerns to the intergroup level and make trading disadvantageous inequality for greater profit more difficult. Studies 1–3 show that profit maximization diminishes when recipients belong to different social categories (e.g., genders, universities). Study 2 further implicates self‐categorization, as self‐categorized individuals tend to forgo profit whether making a choice for themselves or another ingroup member. Study 3, moreover, reveals that social categorization alone is not sufficient to diminish profit maximization; individuals must self‐categorize and identify with their categorization. Copyright © 2005 John Wiley & Sons, Ltd.
Keywords:choice  decision making  self‐categorization  fairness  trade‐offs  profit maximization  social identity  social comparison
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