Perceptions of Fairness with Three Alternative Economic Exchanges

Abstract

Based on pilot information, a laboratory experiment and field validation were conducted to support the notion that people may use objectively-defined exchange rules other than those governing equity in economic interaction. The pilot and study 1 investigated situational and personal differences in the use of equity (reward proportional to investment), equality (equal reward irrespective of investment), and the WTA (entire reward to one participant) exchange. The choice of exchange varied to match the sent norms in the situation; self-described gamblers were more likely than nongamblers to be influenced by the exchange norm. Use of a particular exchange also depended on the task being evaluated. In a field situation, study 2 found some support for the earlier studies. The findings are discussed in relation to social exchange theory and to applications with organizational reward systems; suggestions are made for future research.