What Is Inequity Aversion In Behavioral Economics?

Inequity aversion is a concept in behavioral economics that refers to the tendency of individuals to avoid situations where they perceive that there is an unfair distribution of resources or benefits. This concept is based on the idea that people have a strong preference for fairness and are motivated to maintain a sense of equity and justice in their interactions with others. Inequity aversion can influence people’s behavior in a variety of ways, such as through their willingness to cooperate with others or their willingness to participate in social exchanges. It is an important factor in understanding human behavior and decision-making.

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