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In social interactions, people frequently encounter gain (i.e., all outcomes are gains from the status-quo) or loss (all outcomes are losses from the status-quo) social dilemmas, where their personal interests conflict with social interests. We ask whether there are any behavioral differences in social interactions when it comes to gains and losses. Using the Prisoner’s Dilemma games, in three studies we observed that participants were less cooperative in the loss domain than in the gain domain. This effect was robust, not moderated by payoff amount (Study 1), cooperation index (Study 1), domain comparison (Studies 1 and 2), and personal loss aversion (Study 3). Social motive and belief explained this effect: compared to the gain domain, participants in the loss domain aroused more pro-self motive and less prosocial motive, and showed stronger beliefs that their partner would defect, which led them to cooperate less. These findings suggest that gain and loss domains affect individual motivation and belief, subsequently affecting strategic choices in social dilemmas.

Individuals are consistently observed to be risk-averse over gains and risk-seeking over losses. This study examined whether increased social distance would change these behavioral patterns. To test our hypothesis, social distance was manipulated by asking the participants to make decisions either for themselves or for another person (Experiment 1), either for a known person or for an unknown person (Experiment 2), and either for a close friend or for a distant friend (Experiment 3). The results of Experiments 1 and 3 showed that increased social distance made people more risk-neutral, and such an effect was stronger in the gain domain than in the loss domain. However, the effect of social distance was not observed in Experiment 2. These findings suggest that risk preferences are influenced by the social distance between decision makers and beneficiaries. [ABSTRACT FROM AUTHOR]

Economic decisions are often made in stressful situations (e.g., at the trading floor), but the effects of stress on economic decision making have not been systematically investigated so far. The present study examines how acute stress influences economic decision making under uncertainty (risk and ambiguity) using financially incentivized lotteries. We varied the domain of decision making as well as the expected value of the risky prospect. Importantly, no feedback was provided to investigate risk taking and ambiguity aversion independent from learning processes. In a sample of 75 healthy young participants, 55 of whom underwent a stress induction protocol (Trier Social Stress Test for Groups), we observed more risk seeking for gains. This effect was restricted to a subgroup of participants that showed a robust cortisol response to acute stress (n = 26). Gambling under ambiguity, in contrast to gambling under risk, was not influenced by the cortisol response to stress. These results show that acute psychosocial stress affects economic decision making under risk, independent of learning processes. Our results further point to the importance of cortisol as a mediator of this effect. [ABSTRACT FROM AUTHOR]