ABSTRACT

The choice of a specific comparison group turns that group into a yardstick by which the comparing person measures his/her own rewards. That is, this yardstick for comparisons is a relativistic measure by which rewards may be evaluated. Consequently, the choice of a comparison criterion has several important implications. 1 First, choosing a specific comparison group implies that the comparing person knows (or at least is able to estimate) how much that group is earning. This will determine the size of the perceived gap between the person and his/her comparison group.