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Further examination of the equity sensitivity construct.
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1991
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Behavioral Decision MakingFinancial Risk ManagementPsychosocial DeterminantSocial PsychologySocial InfluenceIndividual Decision MakingOrganizational BehaviorPsychologySocial SciencesEquity Sensitivity InstrumentBiasManagementUnconscious BiasBehavioral SciencesApplied Social PsychologyFinanceBehavioral EconomicsEquity SensitivityBusinessEquity Sensitivity ConstructCorporate Finance
This study was conducted to investigate whether a measure of equity sensitivity can predict individual reactions to inequity. The equity sensitivity construct suggests that there are three categories of individual preferences for equity: (1) benevolent individuals prefer their input:outcome ratios be less than those of their comparison others, (2) equity sensitive individuals prefer their input:outcome ratios be equal to those of comparison others, and (3) entitled individuals prefer their input:outcome ratios be higher than those of comparison others. To identify their appropriate equity sensitivity category, 639 undergraduate students and 119 fast-food restaurant employees were administered the Equity Sensitivity Instrument. These subjects were then asked to react to two underreward/overreward scenarios. Analysis indicates that equity sensitivity groups generally exhibit reactions in the direction predicted by the study; however, some inconsistencies require further study. Research should examine why some reactions to inequity are chosen over others and how the longitudinal effects of a work relationship may influence one's reactions to inequity.