Journal of Economic Psychology2014-08-18 9:01 PM

How many pennies for your pain? Willingness to compensate as a function of expected future interaction and intentionality feedback


Despite increased research efforts in the area of reconciliation and trust repair in economic  relations, most studies depart from a victim’s perspective and evaluate the process of trust repair by looking at the impact of restoration tactics on victims’ reactions. We focused on the transgressor’s perspective and present findings from two studies that investigated how the amount of compensation that a transgressor is willing to pay depends on victims’ reactions  to  the  transgression  (i.e.  whether  they  claim  the  transgression  happened intentionally or unintentionally) and the time horizon of the relationship between the transgressor and the victim (future vs. no future interaction). We hypothesized and found that  transgressors  are  willing  to  pay  less  compensation  to  a  victim  who  believes  the transgression happened intentionally (as opposed to unintentionally), but only so when they  share  no  future  interaction  perspective  together.  When  transgressors  have  a future  interaction  perspective  with  the  victim,  intentionality  feedback  does  not  affect compensation size.


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Journal of Economic Psychology

Research in Economic Psychology and Behavioral Economics.The Journal aims to present research that will improve understanding of behavioral, especially socio- psychological, aspects of economic phenomena and processes.

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