The consensus in social psychology is that monetary incentives for performance have a detrimental impact on individual performance. Yes, under certain specific and limited conditions, rewards can reduce performance. Yet pay for performance schemes are ubiquitous. How can we resolve this...

In an empirical examination of the effects of inequity in interorganizational relationships, the authors find similarities and differences in the way that Dutch and U.S. automobile dealers react to inequity in their relationships with their automobile suppliers. As predicted by equity theory,...