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Money isn't all that matters: The use of financial compensation and apologies to preserve relationships in the aftermath of distributive harm

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Abstract

Previous studies have shown that when a recipient suffers from financial harm, allocators can use repair strategies that address financial or relational interests to promote relationship repair. Research to date, however, has neglected to study the effects of financial and relational strategies on relationship preservation simultaneously. In the present contribution, we examine this question. Based on the equality norm, we hypothesized that a financial compensation that fails to redress the harm suffered by the recipient (i.e., undercompensation) will be less effective in preserving a relationship than a financial compensation that do redress it (i.e., equal compensation and overcompensation). Moreover, we expected that relational strategies (i.e., apologies) would promote relationship preservation in contexts where the financial compensation alone is insufficient to redress the harm to the recipient, thus in cases of undercompensation. The results of a pilot study and a lab experiment using the dictator game confirmed our hypotheses. Consequently, our studies demonstrate that even in purely economic settings, relational strategies (i.e., apologies) can facilitate relationship preservation over and above financial strategies (i.e., financial compensation). 

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[Haesevoets, Tessa ; Folmer, Chris Reinders ; Van Hiel, Alain] Univ Ghent, Dept Dev Personal & Social Psychol, B-9000 Ghent, Belgium

[De Cremer, David] China Europe Int Business Sch, Dept Management, Shanghai 201206, Peoples R China


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Source

Journal of Economic Psychology

ISSN:0167-4870

Year:2013

Volume:35

Page:95-107

Powered by JCR@2013

ESI Discipline:PSYCHIATRY/PSYCHOLOGY;

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