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New directions in equity research.
1.6K
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1973
Year
Behavioral Decision MakingEquity ResearchSocial PsychologyEquity TheorySocial SciencesPsychologyPrivate Equity FundEquity PortfoliosBehavioral SciencesLest Equity TheoryAltruismApplied Social PsychologyGeneral TheoryRational Choice TheoryFinanceMoral PsychologyBehavioral EconomicsProsocial BehaviorSocial BehaviorBusiness
This article consists of four sections: The first section elucidates a general theory of social behavior—equity theory. Equity theory consists of four propositions designed to predict when individuals will perceive that they are justly treated and how they will react when they find themselves enmeshed in unjust relationships. The second section summarizes the extensive research that has been conducted to lest equity theory. The third section points out the ways in which equity theory interlocks with other major social psychological theories. The final section hints at some ways in which equity theory can be applied to understanding social problems. THE THEORETICAL FORMULATION The proposition that individuals seek for themselves maximum reward at minimum cost is hardly startling. Theories in a wide variety of disciplines rest on the assumption that Man is Psychologists believe that behavior can be shaped by the careful application of reinforcement s. Economists assume that individuals will purchase desired products at the lowest available Moral philosophers conclude that the ideal society can only be one which insures the good for the greatest number. Politicians contend that man has his price. Equity theory, too, rests on the assumption that man is selfish. Thus, our first proposition states: Proposition I: Individuals will try to maximize their outcomes (where outcomes equal rewards minus costs). If everyone were unrestrained in his attempts to get what he wanted, everyone would suffer. Every man would attempt to monopolize community resources; every man would be continually confronted by rivals bent on reclaiming these resources. Only by working out a compromise can the group avoid continual warfare and maximize collective reward. This fact is acknowledged in Proposition II A:
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