Medium of exchange matters: what's fair for goods is unfair for money

Psychol Sci. 2010 Feb;21(2):159-62. doi: 10.1177/0956797609357749. Epub 2010 Jan 8.

Abstract

Organized groups face a fundamental problem of how to distribute resources fairly. We found people view it as less fair to distribute resources equally when the allocated resource invokes the market by being a medium of exchange than when the allocated resource is a good that holds value in use. These differences in fairness can be attributed to being a medium of exchange, and not to other essential properties of money (i.e., being a unit of account or a store of value). These findings suggest that egalitarian outcomes have a greater likelihood of being accepted as fair when the resources being distributed take the form of in-kind goods rather than of cash transfers.

Publication types

  • Comparative Study

MeSH terms

  • Attitude*
  • Cross-Cultural Comparison
  • Economics*
  • Efficiency*
  • Employee Incentive Plans
  • Humans
  • Income*
  • Judgment
  • Motivation
  • Resource Allocation*
  • Reward
  • Social Justice*
  • Social Values*