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You can’t be better than me: The role of the reference point in modulating people’s pursuit of wealth

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  • Pittarello, Andrea
  • Rubaltelli, Enrico
  • Rumiati, Rino

Abstract

Two experiments showed that participants use the achievements of others as reference points with which to compare their wealth. In turn, being better or worse than referent others exerted influence on participants’ tendency to interpret ambiguous scenarios in a self favorable way. Experiment 1 revealed that participants who scored consistently below the average performance were more likely than participants who scored consistently above the average to exploit situations in which the rules were unclear. Experiment 2 provided participants with detailed information about their exact ranking within a hypothetical group of several individuals. Results showed that both participants who ranked above (second) and below (second-last) the average were willing to take advantage of ambiguous situations to improve their status. The level of detail of information about participants’ performance allows a more precise evaluations of their achievements and shifts their attention toward the comparison in which they are worse off. Comparisons with relevant others modulate the pursuit of self-interest and greater wealth, and such effect may account for several dynamics in the society.

Suggested Citation

  • Pittarello, Andrea & Rubaltelli, Enrico & Rumiati, Rino, 2013. "You can’t be better than me: The role of the reference point in modulating people’s pursuit of wealth," Journal of Economic Psychology, Elsevier, vol. 37(C), pages 65-76.
    • Handle: RePEc:eee:joepsy:v:37:y:2013:i:c:p:65-76
    DOI: 10.1016/j.joep.2013.05.006
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    References listed on IDEAS

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    More about this item

    Keywords

    Reference point; Goal achievement; Social comparison; Performance;
    All these keywords.

    JEL classification:

    • Z00 - Other Special Topics - - General - - - General

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