Effects of gain—loss frames on satisfaction with self–other outcome‐differences

Abstract

AbstractThis research concerned satisfaction with outcome‐differences (advantageous inequity, equity, or disadvantageous inequity) as a function of the individual's gain or loss frame, other's gain or loss frame, the cooperative or noncooperative nature of the relationship, and their interactions. After reading a scenario, subjects rated on a satisfaction‐dissatisfaction scale a series of outcome‐pairs providing themselves and another party with outcomes. Consistent with Equity Theory, results showed that gain framed individuals found equity more pleasing than advantageous inequity, which in turn was preferred over disadvantageous inequity, but only when the decision making context was coopera‐ tive rather than noncooperative. In a noncooperative context, gain framed individuals were as pleased with equity as with advantageous inequity. Contrary to Equity Theory, but consistent with Prospect Theory, loss framed individuals were relatively insensitive to outcome‐differences and the nature of the relationship. Results finally suggested that advantageous inequity was preferred less when the other party had a loss rather than gain frame, albeit only under cooperative circumstances.