The impact of Facebook status on economic decision-making

A number of studies in behavioral economics have reported that perceived relative status greatly impacts economic decisions. Individuals who have acquired high status through competitive gains behave more selfishly in economic transactions when paired with individuals who are ranked lower than themselves. The results of two experiments reported similar results on the basis of Facebook status. When Facebook users who possessed large friend-counts and heavy engagement (High Status) were paired with partners whom they were told had low Facebook friend-counts and engagement (Low Status), they offered significantly less money to their partners in Dictator and Ultimatum Games, and Low Status Facebook users were willing to accept lower offers from High Status users in the Ultimatum Game. Facebook status does impact economic decision-making in the same way as other competitively-acquired relative social status.