The main goal of the present research is to examine socio-ecological hypothesis on apology and compensation. Specifically, we conducted four studies to test the idea that an apology is an effective means to induce reconciliation in a residentially stable community, whereas compensation is an effective means in a residentially mobile community. In Studies 1, 2a and 2b, American and Japanese participants (national difference in mobility; Study 1) or non-movers and movers (within-nation difference in mobility; Studies 2a and 2b) imagined the (...) situations in which they were hurt by their friends and rated to what extent they would be willing to maintain their friendships upon receipt of apology or compensation. The results showed that compensation was more effective in appeasing residentially mobile people (i.e., Americans and movers) than stable people (i.e., Japanese and non-movers), while apology was slightly more effective appeasing residentially stable people than residentially mobile people (significant in Study 1; not significant in Studies 2a and 2b). In Study 3, by conducting an economics game experiment, we directly tested the hypothesis that mobility would impair the effectiveness of apology and enhance the effectiveness of compensation. The results again partially supported our hypothesis: In the high mobility condition compensation increased one’s willingness to continue the relationship with the offender, when compared to willingness in the low mobility condition. The importance of socio-ecological perspective on the forgiveness literature is discussed. (shrink)