On the Psychology of the Advantaged: How People React to Being Overpaid

Based on the idea that overpaid people are in conflict between hedonic principles (i.e., what makes them pleased) and what they believe to be right, two studies tested the hypothesis that it should be relatively difficult for people to make satisfaction judgments regarding outcomes in which they are being advantaged. In line with this hypothesis, Study 1 demonstrated that response latencies of satisfaction judgments were longer when participants were being overpaid, compared to when they were underpaid or equally paid. Study 2 extended these findings by demonstrating that people required more time to make satisfaction judgments when they were overpaid in the context of a close relationship (i.e., in which the conflict between hedonic and concerns for the other’s need should be stronger) than when overpaid in the context of a non-close relationship. Theoretical implications regarding the social-cognitive processes underlying reactions to overpayment are discussed.