The equity theory suggests that people evaluate the fairness of their situations by comparing them with those of other people.

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Equity theory suggests that people evaluate the fairness of their situations by comparing them with those of other people. According to the theory, a person (P)compares her own ratio of perceived outcomes O (pay, benefits, working conditions)to perceived inputs I (effort, ability, experience)to the ratio of a comparison other (o).

The Equity Theory Suggests That People Evaluate the Fairness of Their