Andy Vonasch
Associate Professor Andy Vonasch is an award-winning social psychologist, teacher, and mentor based in the School of Psychology, Speech, and Hearing at the University of Canterbury. He completed his Ph.D. at Florida State University and conducted extensive experimental research at Yale University, Pomona College, and the University of North Carolina before relocating to New Zealand. Andy’s research merges experimental psychology with experimental philosophy to investigate the hidden mechanisms of human agency, decision-making, and moral character. A passionate advocate for the open science movement and methodology transparency, his current work maps out how people read hidden motives, detect ulterior intentions, and navigate the psychological costs of protecting public reputations.
TALK TOPIC
People Reject Free Money and Cheap Deals Because They Infer Phantom Costs
If money is good, then shouldn’t more money always be better? Perhaps not. Traditional economic theories suggest that money is an ever-increasing incentivizer. If someone will accept a job for US$20/hr, they should be more likely to accept the same job for US$30/hr and especially for US$250/hr. However, 10 preregistered, high-powered studies (N = 4,205, in the United States and Iran) reveal how increasing incentives can backfire. Overly generous offers lead people to infer “phantom costs” that make them less likely to accept high job wages, cheap plane fares, and free money. We present a theory for understanding when and why people imagine these hidden drawbacks and show how phantom costs drive judgments, impact behavior, and intersect with individual differences. Phantom costs change how we should think about “economic rationality.” Economic exchanges are not merely about money, but instead are social interactions between people trying to perceive (and deceive) each others’ minds.