A psychophysical determination of equitable payment: A methodological study

Abstract

EXPLORED THE PRACTICALITY OF USING PSYCHOPHYSICAL METHODS TO DETERMINE RANGES FOR PAYMENT PLANS. THRESHOLDS OF PERCEIVED EQUITABLE PAYMENT (PSE) AND THE JUST MEANINGFUL DIFFERENCE (JMD) OF PAYMENT WERE DETERMINED BY AN ADAPTATION OF THE PSYCHOPHYSICAL METHOD OF LIMITS. PSE AND JMD WERE SIGNIFICANTLY GREATER FOR JUNIOR EXECUTIVES (N = 20) THAN FOR SECRETARIES (N = 52) OF AN ACADEMIC INSTITUTION. THE RESPECTIVE WEBER RATIOS, K (THE PROPORTIONATE MEANINGFUL ADDITIONS TO THE BASE SALARY), WERE NOT SIGNIFICANTLY DIFFERENT. THERE WERE NO SIGNIFICANT DIFFERENCES BETWEEN 2 SECRETARIAL SUBGROUPS IN JMD AND K, BUT THERE WAS A DIFFERENCE IN PSE. THE RELEVANCE OF THIS METHOD TO EQUITY THEORY IS DISCUSSED. (PsycInfo Database Record (c) 2025 APA, all rights reserved)