Perilous and unaccountable: The positive relationship between dominance and moral hazard behaviors.

Moral hazard involves a context where decision-makers engage in behaviors that prioritize self-interest while allowing the associated risk to be primarily borne by others. Such decision making can lead to catastrophic consequences, as seen in the 2008 global financial crisis after hedge fund managers indiscriminately invested their clients' money in subprime mortgages. This research examines which decision-makers are most likely to engage in moral hazard decision making and the psychological mechanism driving this behavior. Drawing on the dual model of social influence, we posit that individuals associated with dominance, but not prestige, will engage in greater moral hazard behaviors. We further contend that these behaviors are driven by dominant decision-makers' enhanced focus on end goals (outcomes) rather than the means (process) that they use to pursue such goals. We find support for our hypotheses across 13 studies (NObservations = 26,880; of which eight were preregistered and six studies are reported in the Supplemental Materials), using both correlational and experimental designs. Additionally, we vary the moral hazard context (e.g., a financial setting, a health and safety issue, etc.) and capture both behavioral intentions and actual behaviors, while also ruling out several alternative explanations. These findings demonstrate that dominant decision-makers engage in moral hazard behaviors because of their tendency to prioritize outcomes over processes. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

The impact of leader dominance on employees' zero-sum mindset and helping behavior.

Leaders strive to encourage helping behaviors among employees, as it positively affects both organizational and team effectiveness. However, the manner in which a leader influences others can unintentionally limit this desired behavior. Drawing on social learning theory, we contend that a leader's tendency to influence others via dominance could decrease employees' interpersonal helping. Dominant leaders, who influence others by being assertive and competitive, shape their subordinates' cognitive schema of success based on zero-sum thinking. Employees with a zero-sum mindset are more likely to believe that they can only make progress at the expense of others. We further propose that this zero-sum mindset results in less interpersonal helping among subordinates. We test our hypotheses by employing different operationalizations of our key variables in eight studies of which four are reported in the manuscript and another four in Supplemental Information across a combined sample of 147,780 observations. These studies include a large archival study, experiments with both laboratory and online samples, and a time-lagged field study with employees from 50 different teams. Overall, this research highlights the unintended consequences that dominant leaders have on their followers' helping behavior by increasing their zero-sum mindset. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Culture and Patterns of Reciprocity: The Role of Exchange Type, Regulatory Focus, and Emotions.

Reciprocity is a fundamental mechanism for sustained social relationships. Escalation-based theories suggest that reciprocity intensifies over time. In contrast, equity-based theories propose that people reciprocate behaviors in kind. We reconcile these conflicting perspectives by examining social exchanges across different cultural contexts. Using three complementary experiments, we investigate when, how, and why individuals in East Asian settings and those in North American settings differentially reciprocate positive versus negative behaviors over time. Study 1 demonstrated that in positively framed exchanges (i.e., giving) Americans escalated their reciprocity, but Singaporeans reciprocated in kind. However, in negatively framed exchanges (i.e., taking), Singaporeans escalated their reciprocity, but Americans reciprocated in kind. Study 2 replicated the results using Hong Kongers and showed that cultural differences in regulatory focus were associated with specific emotions (i.e., anxiety and happiness), which then escalated reciprocity. To establish causality, Study 3 manipulated regulatory focus within one culture and replicated the pattern of results.

The impact of dynamic status changes within competitive rank-ordered hierarchies.

Jockeying and competing for higher status is an inherent feature of rank-ordered hierarchies. Despite theoretically acknowledging rank changes within hierarchies, the extant literature has ignored the role of competitors' dynamic movements on a focal actor's resulting behavior. By using a dynamic lens to examine these movement in competitive situations, we examine how positive change in a competitor's rank-that is, positive status momentum-affects a focal actor's psychology and resulting performance. We consider the real-world contexts of 5.2 million observations of chess tournaments and 117,762 observations of professional tennis players and find that a focal actor's performance in both cognitive and physical competitions is negatively impacted when facing a competitor with positive momentum. Additionally, 4 experimental studies reveal that a competitor's positive momentum results in the focal actor's positive projection of the competitor's future rank, which, in turn, increases the psychological threat for the actor. Collectively, our findings advance the social hierarchy literature by helping to elucidate the manner in which rank-ordered hierarchies are negotiated and disrupted over time.

The role of social status and testosterone in human conspicuous consumption.

Conspicuous consumption refers to the phenomenon where individuals purchase goods for signalling social status, rather than for its inherent functional value. This study (n = 166 male participants) investigated how the outcome of a social competition influenced conspicuous consumption, and its association with competition-induced testosterone reactivity. Winning a competition increased both explicit and implicit preferences for higher-status vs. lower-status products, using both natural stimuli (prestigious cars) and laboratory-tagged stimuli of matched value (university T-shirts). Competition also influenced behaviour in an Ultimatum Game, such that winners were more likely to reject unfair offers. Competition outcomes had no discernible influence upon salivary testosterone levels, and neither basal testosterone levels nor testosterone reactivity induced by competition predicted the conspicuous consumption measures. Our data indicate that winning a competition lead to more dominant behaviour, albeit in a manner that is not statistically regulated by testosterone, possibly through increased feeling of entitlement.

When the appeal of a dominant leader is greater than a prestige leader.

Across the globe we witness the rise of populist authoritarian leaders who are overbearing in their narrative, aggressive in behavior, and often exhibit questionable moral character. Drawing on evolutionary theory of leadership emergence, in which dominance and prestige are seen as dual routes to leadership, we provide a situational and psychological account for when and why dominant leaders are preferred over other respected and admired candidates. We test our hypothesis using three studies, encompassing more than 140,000 participants, across 69 countries and spanning the past two decades. We find robust support for our hypothesis that under a situational threat of economic uncertainty (as exemplified by the poverty rate, the housing vacancy rate, and the unemployment rate) people escalate their support for dominant leaders. Further, we find that this phenomenon is mediated by participants' psychological sense of a lack of personal control. Together, these results provide large-scale, globally representative evidence for the structural and psychological antecedents that increase the preference for dominant leaders over their prestigious counterparts.

The unintended consequences of argument dilution in direct-to-consumer drug advertisements.

Direct-to-consumer (DTC) advertising of pharmaceutical drugs is often cited as the culprit for inflated patient demand for advertised drugs. Further to this economic concern, we provide an evidence-based psychological account of another concern that warrants the re-examination of the merits of DTC advertising of prescription drugs. Across six experiments and a sample of 3,059 US participants, we find reliable evidence for the argument dilution effect. Specifically, when commercials list severe side effects along with those that are most frequent (which include both serious and minor side effects), as required by the Food and Drug Administration, it dilutes consumers' judgements of the overall severity of the side effects, compared with when only the serious side effects are listed. Furthermore, consumers' reduced judgement of severity leads to greater attraction to those drugs. In regulating pharmaceutical advertisements, the Food and Drug Administration appear to have paradoxically dampened consumers' judgements of overall severity and risk, and increased the marketability of these drugs.

The remarkable robustness of the first-offer effect: across culture, power, and issues.

The first-offer effect demonstrates that negotiators achieve better outcomes when making the first offer than when receiving it. The evidence, however, primarily derives from studies of Westerners without systematic power differences negotiating over one issue-contexts that may amplify the first-offer effect. Thus, the present research explored the effect across cultures, among negotiators varying in power, and in negotiations involving single and multiple issues. The first two studies showed that the first-offer effect remains remarkably robust across cultures and multi-issue negotiations. The final two studies demonstrated that low-power negotiators benefit from making the first offer across single- and multi-issue negotiations. The second and fourth studies used multi-issue negotiations with distributive, integrative, and compatible issues, allowing us to show that first offers operate through the distributive, not the integrative or compatible issues. Overall, these results reveal that moving first can benefit negotiators across many organizational and personal situations.

From glue to gasoline: how competition turns perspective takers unethical.

Perspective taking is often the glue that binds people together. However, we propose that in competitive contexts, perspective taking is akin to adding gasoline to a fire: It inflames already-aroused competitive impulses and leads people to protect themselves from the potentially insidious actions of their competitors. Overall, we suggest that perspective taking functions as a relational amplifier. In cooperative contexts, it creates the foundation for prosocial impulses, but in competitive contexts, it triggers hypercompetition, leading people to prophylactically engage in unethical behavior to prevent themselves from being exploited. The experiments reported here establish that perspective taking interacts with the relational context--cooperative or competitive--to predict unethical behavior, from using insidious negotiation tactics to materially deceiving one's partner to cheating on an anagram task. In the context of competition, perspective taking can pervert the age-old axiom "do unto others as you would have them do unto you" into "do unto others as you think they will try to do unto you."

Rising stars and sinking ships: consequences of status momentum.

Differences in rank are a ubiquitous feature of social life. Moving beyond the traditional static view of social hierarchy, five studies spanning multiple contexts examined how intertemporal changes in rank influenced people's status judgments. When final rank was held constant, people, products, and institutions were judged as higher status when they had arrived at this position by ascending, rather than descending, the hierarchy; moreover, these judgments affected downstream pricing recommendations, willingness to pay for products, and influence accepted from others. This impact of rank history on status judgments was accounted for by expectations of future status and moderated by the involvement of the self: The self and others are afforded an equivalent status boost for ascending to a given rank; however, only the self is pardoned the status tax that is levied on others for descending to the same rank. The theoretical utility of a dynamic approach to social hierarchy is discussed.

The eyes and ears of status: how status colors perceptual judgment.

To those with high status, abundance is granted. Moving beyond the multitude of objective benefits, the authors explore how status, once conferred, colors the perceptual world people inhabit. In four experiments, participants' status state influenced their judgments of status-relevant features in their environment. Participants in a state of high status reported hearing applause (Experiment 1) and seeing facial expressions (Experiment 2), in reaction to their performance, as louder and more favorable. In addition, expectations of how others will respond--expectations stemming from one's current status state--accounted for this effect (Experiment 3). Finally, differences in judgments between participants experiencing high versus low status were observed only when the target of the evaluation was the self (Experiment 4). These results advance scholars' understanding of the psychological experience of status and contribute to the growing literature on the dominant influence psychological states have on people's judgments of their social world.

Illusory control: a generative force behind power's far-reaching effects.

Three experiments demonstrated that the experience of power leads to an illusion of personal control. Regardless of whether power was experientially primed (Experiments 1 and 3) or manipulated through roles (manager vs. subordinate; Experiment 2), it led to perceived control over outcomes that were beyond the reach of the power holder. Furthermore, this illusory control mediated the influence of power on several self-enhancement and approach-related outcomes reported in the power literature, including optimism (Experiment 2), self-esteem (Experiment 3), and action orientation (Experiment 3). These results demonstrate the theoretical importance of perceived control as a generative cause of and driving force behind many of power's far-reaching effects. A fourth experiment ruled out an alternative explanation: that positive mood, rather than illusory control, is at the root of power's effects. The discussion considers implications for existing and future research on the psychology of power, perceived control, and positive illusions.

Getting off on the wrong foot: the timing of a breach and the restoration of trust.

Few interpersonal relationships endure without one party violating the other's expectations. Thus, the ability to build trust and to restore cooperation after a breach can be critical for the preservation of positive relationships. Using an iterated prisoner's dilemma, this article presents two experiments that investigated the effects of the timing of a trust breach-at the start of an interaction, after 5 trials, after 10 trials, or not at all. The findings indicate that getting off on the wrong foot has devastating long-term consequences. Although later breaches seemed to limit cooperation for only a short time, they still planted a seed of distrust that surfaced in the end.

Predicting workplace aggression: a meta-analysis.

The authors conducted a meta-analysis of 57 empirical studies (59 samples) concerning enacted workplace aggression to answer 3 research questions. First, what are the individual and situational predictors of interpersonal and organizational aggression? Second, within interpersonal aggression, are there different predictors of supervisor- and coworker-targeted aggression? Third, what are the relative contributions of individual (i.e., trait anger, negative affectivity, and biological sex) and situational (i.e., injustice, job dissatisfaction, interpersonal conflict, situational constraints, and poor leadership) factors in explaining interpersonal and organizational aggression? Results show that both individual and situational factors predict aggression and that the pattern of predictors is target specific. Implications for future research are discussed.