Fairness and Equality

How important is fairness? Well, in a recent study conducted by the University of Zurich temporary workers were asked about taking a pay cut. The choices were based on what they earned in comparison to what their co-workers earned. What is interesting is the participants overwhelmingly chose less money as long as everyone else took less money. Meaning, they would prefer making $10 an hour vs. $12 an hour as long as it was perceived as fair. It turns out humans have a strong drive for equality and fairness.

Consider a professional athlete who “holds-out” for $20 million vs. accepting the $18 million contract. We think; “Dude, your making $18 million, stop complaining and just play”. However, if other players of equal talent are making $20 million, the $18 million player feels the contract is unfair. So strong is this emotion some players have chosen not to work and lose millions of dollars rather than accept an “unfair” contract. The human desire for fairness explains some otherwise ridiculous positions of executives, celebrities and athletes.