Powerful People Forgo Present Awards For Future Benefits

According to a study that was published in a journal of the Association for Psychological Science, powerful people tend to forgo current rewards for future benefits.

The choice between $120 today and $150 in the next month depends on how powerful one is, say researchers from the University of Southern California Marshall School of Business. According to the researchers, people who feel powerful are more likely to wait for the bigger reward, in part because they feel a stronger connection with their future selves.

Four experiments were conducted during the course of the study. In the first experiment participants were allotted to two teams - one with a team manager (high-power profile) and one team leader (low-power profile). After taking part in some group activities, participants were asked to chose between $120 now or increasing amounts of money ($137, $154, $171, $189, $206, $223, and $240) in one year.

It was found that participants belonging to the low power group were willing to wait for a future benefit only if the amount was at least $88 more than the immediate offer. However, participants from the high power group were willing to wait for future awards even if it was merely $52 more than the immediate offer.

During the second experiment, the relationship between power and reduced temporal discounting was explained, at least in part, by participants' connectedness to their future selves. In the third experiment powerful people also show this pattern with non-monetary rewards.

In the fourth and final experiment, dozens of people were asked about how powerful they feel in their everyday jobs and how much money they have socked away. After taking into account various factors including total income and socioeconomic status, the researchers found that people who felt more powerful at work and who felt more connected with their future selves had amassed greater lifetime savings.

"It is important to foster awareness of all of power's effects," the researchers said. "Otherwise, the power holder may make overly risky -- albeit well-intentioned -- decisions on behalf of their future self."