Adams' dissonance-based equity theory is compared with a normative approach based on the value-expectancy-normative (VEN) model of social behaviour. This alternative view of equity phenomena avoids difficulties associated with consistency theory by attributing motivation to reduce inequity to conformity with an equity norm. It retains most of the behavioural predictions of Adams' model but emphasizes the effect of situational factors known to influence conformity. It is suggested that the VEN model is particularly useful for predicting behaviour in cases of profitable inequity where self-interest and equitable behaviour are in conflict. In the first experiment high and low profitable inequity were induced by two levels of overpayment, and reward re-allocation examined under two 'surveillance' conditions. Reward re-allocation occurred as predicted by Adams, but the effect of magnitude of inequity on outcome choice supported the VEN prediction rather than predictions derived from Adams' somewhat ambiguous statement. The effect of the surveillance variable did not reach the required level of significance. The VEN approach was further examined in the second experiment by inducing competitive and co-operative relations between P and 0 and exposing them to two levels of economic cost of conforming with the equity norm. As predicted, both the competitive relationship and high cost of conformity reduced equitable behaviour.