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The Incentives Lab
HBT-COG-0398 · Dimension COG · Cognition

Inequity Aversion (Fehr-Schmidt)

People sacrifice payoff to punish unfair distributions — even unfairness that benefits them produces guilt-style discomfort.

Social·Mental Model·Grade B·draft· enriching…

Scientific Definition

People sacrifice payoff to punish unfair distributions — even unfairness that benefits them produces guilt-style discomfort.

Plain-English Definition

People sacrifice payoff to punish unfair distributions — even unfairness that benefits them produces guilt-style discomfort.

Feynman Explanation

Humans will pay real money to make sure a jerk gets nothing.

Core Principle

People sacrifice payoff to punish unfair distributions — even unfairness that benefits them produces guilt-style discomfort.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

People sacrifice payoff to punish unfair distributions — even unfairness that benefits them produces guilt-style discomfort.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Comp design, customer pricing fairness, partner revenue splits.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Humans will pay real money to make sure a jerk gets nothing.

Examples

Everyday
  • Ultimatum game rejections of substantial 'unfair' offers across cultures.
Modern (Organizational)
  • Comp design, customer pricing fairness, partner revenue splits.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Audit visible ratios, not just absolute amounts. People compare.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
B (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
3 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
Comp design, customer pricing fairness, partner revenue splits.
Amplifying Incentives
Comp design, customer pricing fairness, partner revenue splits.
Org Failure Modes
Comp design, customer pricing fairness, partner revenue splits.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Audit visible ratios, not just absolute amounts. People compare.
Diagnostic Questions
  • Audit visible ratios, not just absolute amounts. People compare.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Audit visible ratios, not just absolute amounts. People compare.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-COG-0398 · COG
Inequity Aversion (Fehr-Schmidt)
IAAPAbilene ParadoxADActon's DictumABActor-Observer BiasALAffinity / Liking BiasAlAltruismAsAstroturfingAPAttitude PolarizationABAttribution BiasBEBarnum EffectBJBecause Justification

Knowledge Graph Neighbors

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.