In the present paper, we investigate how people make decisions when bargaining about complementary resources. When the ownership of such resources is fragmented, actors often fail to coordinate on... Show moreIn the present paper, we investigate how people make decisions when bargaining about complementary resources. When the ownership of such resources is fragmented, actors often fail to coordinate on efficient access, leading to an overall loss in social welfare; the tragedy of the anticommons. In a series of three experiments, in which we introduce a newly developed Anticommons Bargaining Game, we show that people tend to treat perfectly complementary resources as if they are non-complementary. Specifically, we demonstrate that both sellers and buyers of such resources used a more-is-better heuristic when determining their prices. That is, sellers who initially owned a larger part of the resource asked a higher price for their resource than sellers with a smaller part, even though only the combination of parts generated value for the buyer. Likewise, buyers offered more money to sellers with a larger part than to sellers with a smaller part. While this heuristic does not necessarily impede coordination, inequality in resources led to unequal monetary outcomes between the two sellers. Show less
Hilbert, L.P.; Noordewier, M.K.; Dijk, W.W. van 2022
People experience financial scarcity when they have insufficient financial resources to meet demands, and this experience can affect decision-making in various ways. One proposed consequence of... Show morePeople experience financial scarcity when they have insufficient financial resources to meet demands, and this experience can affect decision-making in various ways. One proposed consequence of financial scarcity is increased temporal discounting, which is a tendency to value immediate outcomes more strongly than delayed outcomes. To test whether financial scarcity indeed increases temporal discounting, we developed the Household Task—an experimental paradigm during which participants have to manage the finances of a household. In a pilot, we found that manipulating participants’ financial situation in the Household Task (debts vs. savings and control) induced an experience of financial scarcity. Next, Experiments 1 and 2 confirmed that this experience increased temporal discounting of gains and losses. In Experiments 3 and 4, we tested whether experienced scarcity also increases discounting when financial resources were equal between conditions. However, in these experiments, there was no evidence of such an effect. In Experiment 5, we found that discounting increased when available financial resources were constant while expectations about future financial problems might have differed between conditions. In sum, the current research suggests that when experiencing scarcity, discounting increases as a response to a current or anticipated future shortcoming of available financial resources. Yet, there was no evidence suggesting that discounting increases when a scarcity mindset is induced in isolation. Show less
We examine dishonest behavior in the face of potential uncertain gains and losses in three pre-studies (N = 150, N = 225, N = 188) and a main study (N = 240). Ample research has shown that people... Show moreWe examine dishonest behavior in the face of potential uncertain gains and losses in three pre-studies (N = 150, N = 225, N = 188) and a main study (N = 240). Ample research has shown that people cheat when presented with the opportunity. We use a die-under-cup paradigm, in which participants could dishonestly report a private die roll and thereby increase the odds to obtain a desired outcome. Results showed that the framing of the uncertain situation mattered: Participants who lied to decrease the likelihood to experience a loss used major lies (i.e., reporting a ‘6’), while those who lied to increase the chance to achieve an equivalent gain used more modest lies. Show less
Hilbert, L.P.; Noordewier, M.K.; Dijk, W.W. van 2022
The current study investigated the prospective associations between financial scarcity and financial avoidance. We hypothesized that over time, financial scarcity––the experience of lacking needed... Show moreThe current study investigated the prospective associations between financial scarcity and financial avoidance. We hypothesized that over time, financial scarcity––the experience of lacking needed financial resources––is associated with an increase in financial avoidance––the tendency to avoid dealing with one’s finances––, and vice versa. In a longitudinal panel study, including a large and representative adult sample of Dutch citizens (initial N = 1,122, final N = 837), we measured financial scarcity and financial avoidance twice over a period of 22 months. Data were analyzed using a cross-lagged panel model, which allows to test for prospective effects of one variable on the other, while controlling for autoregressive effects. Confirming our preregistered hypotheses, results showed that financial scarcity was positively related with an increase in subsequent financial avoidance, whereas financial avoidance was positively related with an increase in subsequent financial scarcity. While these longitudinal findings are not causal, they are in line with the concept of a poverty trap, where financial scarcity and financial avoidance form a temporally dynamic and increasing relationship. Show less
A confidence-based climate between public administrations and citizens is essential. This paper argues and provides empirical evidence that depending on the perceived interaction history, different... Show moreA confidence-based climate between public administrations and citizens is essential. This paper argues and provides empirical evidence that depending on the perceived interaction history, different policies are needed to build versus maintain confidence. Applying the extended Slippery Slope Framework of tax compliance, an online and a laboratory experiment were conducted to explore whether tax authorities’ coercive and legitimate power have different effects depending on whether they are situated in an antagonism-based or confidence-based climate. Results showed that in an antagonism-based interaction climate, a combination of high coercive and high legitimate power changed the climate into a confidence-based interaction climate. In contrast, in a confidence-based climate the same power combination did not maintain but erode the climate. Results also suggest that confidence-based climates are maintained by low coercive power combined with high legitimate power. The paper concludes that interaction climates operate as psychological frames which guide how policy instruments affect taxpayers’ trust in the tax authorities. Show less
Fairley, K.; Parelman, J.M.; Jones, M.; McKell Carter, R. 2019
The aim of this study is to provide an explanation for the finding in earlier studies that the self-employed are, on average, more satisfied with their work than the paid employed are, although... Show moreThe aim of this study is to provide an explanation for the finding in earlier studies that the self-employed are, on average, more satisfied with their work than the paid employed are, although they are not more satisfied with their life in general. Fixed-effects regressions are performed with German Socio-Economic Panel data (1984–2012) to investigate how a labor market switch from paid employment to self-employment influences life, work, and leisure satisfaction. The results indicate that switching to self-employment benefits work satisfaction but not life satisfaction. The benefits for work satisfaction are pro- nounced and relatively persistent but accompany large and persistent decreases in leisure satisfaction. Life satisfaction for the switchers to self-employment is consequently on par with the life satisfaction of the non-switchers. Contrasting the switch to self- employment (out of paid employment) with the switch to paid employment (out of self- employment) shows that the detrimental effect on leisure satisfaction distinguishes a switch to self-employment from a switch to paid employment. In conclusion, the results explain why increases in life satisfaction are generally absent for individuals switching to self-employment and why undetermined evidence has been found in previous studies in terms of gains in life satisfaction. Show less
