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Inequity Aversion

🧠 Psychology By CampusDown Wiki Editorial Team Last updated
Inequity aversion is the tendency to care about differences between one's own and others' outcomes, so that people avoid or reject unfair distributions even at personal cost.
Contents
  1. 1. Rejecting unfairness
  2. 2. Fehr–Schmidt
  3. 3. Critiques
  4. 4. FAQ
  5. 5. References

Rejecting unfairness

Güth et al.'s (1982) ultimatum game and Adams's equity theory (1965).

Fehr–Schmidt

Fehr and Schmidt (1999); Bolton and Ockenfels (2000); Brosnan and de Waal (2003); Tricomi et al. (2010).

Critiques

Charness and Rabin (2002) favour efficiency and maximin concerns; reciprocity offers another reading; see relative deprivation.

FAQ

What is it in simple terms?
Rejecting unfair splits even at a cost.
Do people dislike getting more?
Somewhat, but much less than getting less.

Sources reviewed: 2026-10-26

References

  1. Fehr, E., & Schmidt, K. M. (1999). A theory of fairness, competition, and cooperation. Quarterly Journal of Economics, 114(3), 817–868. The canonical model separating disadvantageous and advantageous inequity.
  2. Bolton, G. E., & Ockenfels, A. (2000). ERC: A theory of equity, reciprocity, and competition. American Economic Review, 90(1), 166–193. An alternative model based on relative shares.
  3. Charness, G., & Rabin, M. (2002). Understanding social preferences with simple tests. Quarterly Journal of Economics, 117(3), 817–869. Simple games testing rival social-preference models.
  4. Brosnan, S. F., & de Waal, F. B. M. (2003). Monkeys reject unequal pay. Nature, 425(6955), 297–299. Shows capuchins reject unequal rewards, suggesting evolutionary roots.
  5. Güth, W., Schmittberger, R., & Schwarze, B. (1982). An experimental analysis of ultimatum bargaining. Journal of Economic Behavior & Organization, 3(4), 367–388. The first ultimatum-game experiment, showing rejection of unfair offers.
  6. Adams, J. S. (1965). Inequity in social exchange. Advances in Experimental Social Psychology, 2, 267–299. The equity-theory classic on input–outcome ratios.
  7. Tricomi, E., Rangel, A., Camerer, C. F., & O'Doherty, J. P. (2010). Neural evidence for inequality-averse social preferences. Nature, 463(7284), 1089–1091. Brain-imaging evidence for inequality-averse preferences.

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This article was last updated on October 27, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.