(The) effects of being envied on financial risk-taking behavior

Abstract

Being envied is an ambivalent experience resulted from higher social standing than others. However, the effect of being envied on consumer behavior is under-researched, even with its prevalence in the global society. Two experiments reveal how envied people in a superior position were more likely to pursue riskier but potentially more profitable financial opportunities. In Experiment 1, we found that participants who were envied by other people were more likely to choose a riskier option than those who were not envied. In Experiment 2, we replicated the findings from Experiment 1 and ruled out a sense of achievement as an underlying process in the effect that we found. Those who were envied by others preferred the riskier option than those who achieved the same thing but along with other peers. Therefore, it is feeling of being envied by others which increases the likelihood of taking a risk, not a sense of achievement. We discuss potential processes for this effect of being envied on risk-taking behaviors and implications of the phenomenon. Although being envied is generally perceived negatively, it is a common experience which is potential of further exploration to reap more social benefits for the global society. These findings acknowledge the position of the better off in a competitive community, stimulating consumers to seek better opportunities and perceive potentially better goals.