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

Tessa Haesevoets (First Author), David De Cremer (Participant Author), Chris Reinders Folmer (Participant Author), Alain Van Hiel (Participant Author)

Research output: Contribution to journalJournal

29 Citations (Web of Science)

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).
Original languageEnglish
Pages (from-to)95-107
JournalJournal of Economic Psychology
Volume35
DOIs
Publication statusPublished - 2013

Corresponding author email

Tessa.Haesevoets@UGent.be

Keywords

  • ATTRIBUTIONS
  • Apology
  • COOPERATION
  • DISPOSITIONS
  • Dictator game
  • Equality norm
  • FORGIVENESS
  • Financial compensation
  • INFORMATION
  • INTEGRITY
  • JUSTICE
  • OFFERS
  • OUTCOMES
  • Relationship preservation
  • TRUST VIOLATIONS

Indexed by

  • ABDC-A
  • Scopus
  • SSCI

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