The Hedonic Penalty in Supporting Low-Income Consumers' Needs

Abstract

This paper demonstrates that the more people attribute poverty to individualistic causes—such as a lack of effort—the less willing they are to support initiatives that address the non-basic needs of low-income communities. Accordingly, observers are more likely to (a) attribute a low-income individual's financial struggles to personal failings when that individual makes a hedonic (vs. utilitarian) consumption choice (Studies 1A and 1B), and consequently, (b) penalize them for those choices. We examine this hedonic penalty in two contexts: people are less likely to support government assistance programs for low-income individuals who engage in hedonic consumption (Study 1A), and they are less inclined to hire an equally qualified low-income job candidate who chooses hedonic over utilitarian spending (Study 2). Finally, we show that the hedonic penalty can be mitigated by making the importance and commonality of addressing hedonic needs more salient (Study 3).