| Abstract: | This article addresses the relationship between money and self-esteem, both of which human beings desire. Money is used to purchase products. It may also indicate its owner's competence. Self-esteem is the subjective evaluation of the self, and people want to maintain their good self-image. The exchange between money and self-esteem may follow 3 principles: augmentation, substitution, and competition. A superior payoff augments utility of self-esteem. Money and self-esteem partially compensate for one another when an option contains an abundance of one type of utility and lacks the other. Money and self-esteem compete against each other when decision makers have to choose between the two. Empirical evidence has shown that meaning of money, situational need for money, self-esteem boost, and ego threat influence the exchange between money and self-esteem. The theory presented in this article bridges research in psychology and findings in economics and provides an integrative perspective on understanding human decision making. (PsycINFO Database Record (c) 2010 APA, all rights reserved) |
