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Worse than Schadenfreude

By now, the world is familiar with the German word ‘Schadenfreude’, the joy at the misfortune of others.

Worse than Schadenfreude

Schadenfreude, the joy derived from others' misfortune, is well-known in German culture. However, a growing number of people derive pleasure from watching the world burn, a phenomenon explored in a recent metastudy of "vendetta games." In these games, participants are paired, with one player experiencing their opponent's theft of previous winnings, prompting retaliation. On average, 60% of players in these games would exact revenge, reducing the other player's wealth by roughly half.

In a tournament setting with a prize for the best performer, contestants are given the chance to underreport another player's results in a task. About half of the players in these tournaments would underreport their competitor's performance by approximately 15%. In the classic dictator game, one player decides how to split a pot of money with another player, who can reject an offer deemed too low. Notably, around 25% of the time, the recipient rejects the offer, leading to a 20% loss of the initial pot for both parties.

These games highlight that financial decisions are influenced by factors beyond pure rationality or monetary gain. Players are willing to punish others, even at a cost to themselves, when they perceive the actions as unfair or as a means to gain an unfair advantage. However, a unique category of games, termed "Joy of Destruction games," reveals a stark contrast.

Here, participants receive equal amounts of money and can choose to take it away from their opponent without receiving any benefit themselves. Astonishingly, about one-third of players in these games would reduce their opponent's wealth by approximately 30%. The underlying desire in these individuals is to see the world burn, irrespective of any potential reputational repercussions or the absence of direct gain.

The study, conducted by Karakostas et al. (2025), sheds light on the complex interplay of emotions and rationality in human decision-making.

Written by urgent.news from Klement on Investing's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at klementoninvesting.substack.com →

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