Abstract:

In behavioral economics, inequity aversion means that individuals resist inequitable outcome; that is they are willing to give up some material payoff to move in the direction of more equitable outcomes. Inequity aversion is a common anomaly in economics, which is a focus of social preference theory. Many previous studies have demonstrated this kind of irrational behavior in various situations. Currently, the researchers have constructed FS-ERC model to illustrate the mechanism of inequity aversion. Based on such model, inequity aversion could also be illustrated by negative emotions, intentions, as well as social reward. The factors influencing inequity aversion primarily include demographic variables, social distance, decision time, and the features of experimental task. As to future directions, the researches are expected to the deeper understanding of psychological and neural mechanism about inequity aversion, and to reexamine such phenomenon in various conditions.

Key words: social preferences, inequity aversion, emotion, intention, social reward