publication . Article . 2014

What money can’t buy: The psychology of financial overcompensation

Tessa Haesevoets; Alain Van Hiel; Chris Reinders Folmer; David De Cremer;
Open Access
  • Published: 18 Feb 2014 Journal: Journal of Economic Psychology, volume 42, pages 83-95 (issn: 0167-4870, Copyright policy)
  • Publisher: Elsevier BV
Abstract
Abstract When a financial damage has been inflicted, perpetrators can satisfy victims’ outcome related concerns by providing a financial compensation. Few studies have investigated, however, whether overcompensation (i.e., compensation that is greater than the damage suffered) is more beneficial than equal compensation (i.e., compensation that covers the exact damage suffered). The results of four studies show that overcompensation offers no effects in addition to the impact of equal compensation, and that it even provokes negative outcomes. More specifically, overcompensation is attributed to occur because of a lower level of moral orientation on the part of th...
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Subjects
free text keywords: Applied Psychology, Economics and Econometrics, Sociology and Political Science, Surplus value, Finance, business.industry, business, Equity (finance), Actuarial science, Interpersonal communication, Microeconomics, Financial compensation, Economics, Moral orientation, Social dilemma
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