Profit maximization versus disadvantageous inequality: The impact of self-categorization

Choice behavior researchers (e.g., Bazerman, Loewenstein, & White, 1992) have found that individuals tend to choose a more lucrative but disadvantageously unequal payoff (e.g., self - $600/other - $800) over a less profitable but equal one (e.g., self - $500/ other - $500); greater profit trumps interpersonal social comparison concerns in the choice setting. We suggest, however, that self-categorization (e.g., Hogg, 2000) can shift interpersonal social comparison concerns to the intergroup level and make trading disadvantageous inequality for greater profit more difficult. Studies 1-3 show that profit maximization diminishes when recipients belong to different social categories (e.g., genders, universities). Study 2 further implicates self-categorization, as self-categorized individuals tend to forgo profit whether making a choice for themselves or another ingroup member. Study 3, moreover, reveals that social categorization alone is not sufficient to diminish profit maximization; individuals must self-categorize and identify with their categorization.