Making decisions affecting oneself versus others: The mediating effect of interpersonal closeness and dark triad traits
The payment incentives of portfolio managers and investors are often asymmetrical such that actions that benefit the portfolio manager can harm the client and vice-versa. Despite the presence and potential harm of these asymmetries, relatively little research has investigated self and other decision making broadly. There has also been few attempts to address the effect of reward asymmetries. Additionally, despite the presence of reward asymmetries not every portfolio manager will make risky decisions for their clients, which suggests the presence of an individual difference characteristic. This study addresses these knowledge gaps by examining the effect of interpersonally manipulative personality traits (the Dark Triad) on decision making for the self, others, and under reward asymmetries. The potential positive effect of bonding on participants was also examining. Narcissism and psychopathy were both associated with making riskier decisions for others under reward asymmetries. However, there was an interaction between these personalities, bonding and numeracy such that those high in narcissism and subjective numeracy who bonded with their client made less risky decisions under reward asymmetries. Those high in psychopathy and lower in objective numeracy who bonded with their client made riskier decisions for their client in the other-reward only scenario. The implication of these results for decision making for self and others is discussed.
Carre, Jessica Rose, "Making decisions affecting oneself versus others: The mediating effect of interpersonal closeness and dark triad traits" (2016). ETD Collection for University of Texas, El Paso. AAI10249295.