INSTITUTE FOR SOCIAL AND ECONOMIC RESEARCH AND POLICY iserp COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK JUSTIFICATION AND INDULGENCE DETERMINANTS OF JUSTIFICATION AND INDULGENCE Ran Kivetz Graduate School of Business Columbia University Yuhuang Zen Graduate School of Business Columbia University August 2005 ISERP WORKING PAPER 05-05 PIONEERING SOCIAL SCIENCE RESEARCH AND SHAPING PUBLIC POLICY JUSTIFICATION AND INDULGENCE Determinants of Justification and Indulgence Ran Kivetz Graduate School of Business Columbia University Yuhuang Zheng Graduate School of Business Columbia University ISERP Working Paper 05-05 August 2005 ~13,350 Words 4 Figures Ran Kivetz (E-mail:
[email protected]; Tel: 212-854-4555) is the Sidney Taurel Associate Professor of Business and Yuhuang Zheng (e-mail:
[email protected]) is a doctoral candidate, both at the Graduate School of Business of Columbia University. The research reported in this article was supported by a research grant to Ran Kivetz from Columbia University’s Institute for Social and Economic Research and Policy. Correspondence concerning this article should be addressed to Ran Kivetz, Graduate School of Business, Columbia University, 3022 Broadway, NY, NY 10027. Abstract The decision to indulge is often painful because it evokes guilt and requires sacrificing prudence and necessities. While prior research and common sense suggest that people will allow themselves to indulge when they have a compelling justification, we still know very little about the determinants of such justification and consequent indulgence. Building on prior analyses in the social sciences, we propose two complementary routes to justifying indulgence: one through hard work or excellent performance (an entitlement justification) and the second through the attainment of indulgence without depleting income or monetary resources.