Featured Research

from universities, journals, and other organizations

Money changes what we think is fair, research finds

Date:
December 9, 2009
Source:
University of Toronto, Rotman School of Management
Summary:
Thinking of rewarding your sales department for a job well done? You might not want to make cash part of the payoff.

Thinking of rewarding your sales department for a job well done? You might not want to make cash part of the pay-off.

Related Articles


A study to be published in an upcoming issue of Psychological Science, a journal of the Association for Psychological Science, shows that when it comes to distributing resources, people's ideas about what's fair change depending on what's being handed out. If it's something that has its own intrinsic value -- in-kind goods such as food or vacation days -- people are more likely to see equal distribution of such items as fair.

But if it's something that is only valuable when it's exchanged -- such as money or even credit card reward points -- ideas of fairness shift to a more market-based attitude. In that case, the thinking is that people should receive according to what they've contributed.

"What exactly is it about money that causes people to treat it so differently than other resources?" asks Sanford DeVoe, an assistant professor of organizational behaviour, at the University of Toronto's Rotman School of Management who co-wrote the paper with Columbia University's Sheena Iyengar.

"The paper shows that it is the property of money being a medium of exchange," Prof. De Voe says. "When you allocate something that only has its value in what it can be exchanged for, that is what activates a market mindset and really invokes these strong norms about input and effort leading to reward."

The findings have applications for how companies cope with negative situations too. A firm that wants to cut costs might consider giving employees all the same time off rather than making equal pay cuts across the board that could potentially lead to disgruntlements from a sense of unfairness.


Story Source:

The above story is based on materials provided by University of Toronto, Rotman School of Management. Note: Materials may be edited for content and length.


Cite This Page:

University of Toronto, Rotman School of Management. "Money changes what we think is fair, research finds." ScienceDaily. ScienceDaily, 9 December 2009. <www.sciencedaily.com/releases/2009/12/091209121225.htm>.
University of Toronto, Rotman School of Management. (2009, December 9). Money changes what we think is fair, research finds. ScienceDaily. Retrieved December 18, 2014 from www.sciencedaily.com/releases/2009/12/091209121225.htm
University of Toronto, Rotman School of Management. "Money changes what we think is fair, research finds." ScienceDaily. www.sciencedaily.com/releases/2009/12/091209121225.htm (accessed December 18, 2014).

Share This


More From ScienceDaily



More Mind & Brain News

Thursday, December 18, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Prenatal Exposure To Pollution Might Increase Autism Risk

Prenatal Exposure To Pollution Might Increase Autism Risk

Newsy (Dec. 18, 2014) Harvard researchers found children whose mothers were exposed to high pollution levels in the third trimester were twice as likely to develop autism. Video provided by Newsy
Powered by NewsLook.com
Yoga Could Be As Beneficial For The Heart As Walking, Biking

Yoga Could Be As Beneficial For The Heart As Walking, Biking

Newsy (Dec. 17, 2014) Yoga can help your weight, blood pressure, cholesterol and heart just as much as biking and walking does, a new study suggests. Video provided by Newsy
Powered by NewsLook.com
1st Responders Trained for Autism Sensitivity

1st Responders Trained for Autism Sensitivity

AP (Dec. 16, 2014) More departments are ordering their first responders to sit in on training sessions that focus on how to more effectively interact with those with autism spectrum disorder (Dec. 16) Video provided by AP
Powered by NewsLook.com
Guys Are Idiots, According To Sarcastic Study

Guys Are Idiots, According To Sarcastic Study

Newsy (Dec. 12, 2014) A study out of Britain suggest men are more idiotic than women based on the rate of accidental deaths and other factors. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins