Contributing to the burgeoning discourse on economic inequality, we expose an inequality in what the poor are socially permitted to buy. Across 11 experiments (n = 4,179), we demonstrate that lower-income individuals are held to more restrictive standards of permissible consumption, judged negatively for purchasing the same items as their higher-income peers. We rule out the explanation that higher-income people are socially permitted to consume more simply because they can afford more; instead, we find lower-income people are socially permitted to consume less because they are presumed to need less. These findings suggest that—in addition to economic disparities that restrict what lower-income individuals financially can consume—there is an inequality in what they are socially permitted to consume.
Nine studies investigate when and why people may paradoxically prefer bad news—e.g., hoping for an objectively worse injury or a higher-risk diagnosis over explicitly better alternatives. Using a combination of field surveys and randomized experiments, the research demonstrates that people may hope for relatively worse (versus better) news in an effort to preemptively avoid subjectively difficult decisions (Studies 1–2). This is because when worse news avoids a choice (Study 3A)—e.g., by “forcing one’s hand” or creating one dominant option that circumvents a fraught decision (Study 3B)—it can relieve the decision-maker’s experience of personal responsibility (Study 3C). However, because not all decisions warrant avoidance, not all decisions will elicit a preference for worse news; fewer people hope for worse news when facing subjectively easier (versus harder) choices (Studies 4A-B). Finally, this preference for worse news is not without consequence and may create perverse incentives for decision-makers, such as the tendency to forgo opportunities for improvement (Studies 5A–B). The work contributes to the literature on decision avoidance and elucidates another strategy people use to circumvent difficult decisions: a propensity to hope for the worst.
Serena Hagerty received a Bachelor of Arts in Psychology from Harvard College in May 2016. She entered the Marketing doctoral program at HBS, offered by Harvard’s Graduate School of Arts and Sciences, directly after completing her undergraduate degree. Serena is also a Stone PhD Research Fellow in Inequality and Wealth Concentration at the Harvard Kennedy School.
Her research investigates the consequences of consumer decisions at either end of the wealth distribution. Across several projects she examines both social and market-level consequences of how lower- vs higher-income individuals spend their resources. At the high-end of the wealth distribution, her work explores the permissibility of premium services targeted to a small segment of wealthy consumers and the consequences of overspending by the wealthy on market outcomes. At the low-end of the wealth distribution, she investigates when and why lower-income consumers are judged negatively for their consumption decisions and how such judgments lead to double standards in permissible consumption. While past literature documents disparities in the distribution of resources, her work investigates the consequences of how those resources are spent.
Her research investigates the consequences of consumer decisions at either end of the wealth distribution. Across several projects she examines both social and market-level consequences of how lower- vs higher-income individuals spend their resources. At the high-end of the wealth distribution, her work explores the permissibility of premium services targeted to a small segment of wealthy consumers and the consequences of overspending by the wealthy on market outcomes. At the low-end of the wealth distribution, she investigates when and why lower-income consumers are judged negatively for their consumption decisions and how such judgments lead to double standards in permissible consumption. While past literature documents disparities in the distribution of resources, her work investigates the consequences of how those resources are spent.
- Featured Work
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Contributing to the burgeoning discourse on economic inequality, we expose an inequality in what the poor are socially permitted to buy. Across 11 experiments (n = 4,179), we demonstrate that lower-income individuals are held to more restrictive standards of permissible consumption, judged negatively for purchasing the same items as their higher-income peers. We rule out the explanation that higher-income people are socially permitted to consume more simply because they can afford more; instead, we find lower-income people are socially permitted to consume less because they are presumed to need less. These findings suggest that—in addition to economic disparities that restrict what lower-income individuals financially can consume—there is an inequality in what they are socially permitted to consume.Nine studies investigate when and why people may paradoxically prefer bad news—e.g., hoping for an objectively worse injury or a higher-risk diagnosis over explicitly better alternatives. Using a combination of field surveys and randomized experiments, the research demonstrates that people may hope for relatively worse (versus better) news in an effort to preemptively avoid subjectively difficult decisions (Studies 1–2). This is because when worse news avoids a choice (Study 3A)—e.g., by “forcing one’s hand” or creating one dominant option that circumvents a fraught decision (Study 3B)—it can relieve the decision-maker’s experience of personal responsibility (Study 3C). However, because not all decisions warrant avoidance, not all decisions will elicit a preference for worse news; fewer people hope for worse news when facing subjectively easier (versus harder) choices (Studies 4A-B). Finally, this preference for worse news is not without consequence and may create perverse incentives for decision-makers, such as the tendency to forgo opportunities for improvement (Studies 5A–B). The work contributes to the literature on decision avoidance and elucidates another strategy people use to circumvent difficult decisions: a propensity to hope for the worst.
- Journal Articles
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- Barasz, Kate, and Serena Hagerty. "Hoping for the Worst? A Paradoxical Preference for Bad News." Journal of Consumer Research (forthcoming). View Details
- Hagerty, Serena, and Kate Barasz. "Inequality in Socially Permissible Consumption." Proceedings of the National Academy of Sciences 117, no. 25 (June 23, 2020): 14084–14093. View Details
- Working Papers
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- Mohan, Bhavya, Serena Hagerty, and Michael Norton. "Consumers Punish Firms That Cut Employee Pay in Response to COVID-19." Harvard Business School Working Paper, No. 21-020, August 2020. View Details
- Additional Information
- Area of Study