How Is the Boss's Mood Today? I Want a Raise

Abstract

Other people's incidental feelings can influence one's decision in a strategic manner. In a sequential game in which proposers moved first by dividing a given pot of cash (keeping 50% or 75% of the pot) and receivers responded by choosing the size of the pot (from $0 to $1), proposers were more likely to make an unfair offer (i.e., to keep 75% of the pot) if they were told that receivers had watched a funny sitcom, rather than a movie clip portraying anger, in an unrelated study prior to the game playing. However, when proposers were told that receivers knew proposers had this affective information, the effect dissipated. In other words, a proposer expects a happy receiver to be more accommodating or cooperative than an angry receiver as long as the happy receiver does not realize that the proposer may be trying to benefit from the receiver's current incidental feelings.