Equity Theory in Action: Examples from the World of Sports

Abstract

This article examines equity theory using examples from the sports world. The publicity that surrounds contract negotiations in sports provides real-life examples of equity theory in action. Examples from football, baseball, and basketball are used. An in-depth discussion of Eric Dickerson's negotiations with the Los Angeles Rams is used to illustrate the role of equity theory in salary issues. The application of these examples for use in the classroom is discussed. Additionally, managerial implications of equity theory are addressed.