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This study investigated subjects' cognitive, affective, and physiological reactions to equity and inequity. Results confirmed two hypotheses derived from equity theory: (a) Subjects were more content (and less distressed) when they were equitably rewarded than when they were either underrewarded or overrewarded (Hypothesis 1). Further, overrewarded subjects were more content than were underrcwardcd subjects (Hypothesis 2). Hypothesis 3 predicted that when persons are led to expect inequity, they will be less distressed when an injustice is actually encountered than they would be had they been unprepared for the inequity. This hypothesis was also supported. This last finding was explained in terms of the notion of cognitive set, as developed by Austin.
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