Fair Heuristic Theory or Two-Factor Theory-The Role of Comparison Standard

Professor Kevin Yuk Fai AU
Ph.D., the University of British Columbia
Department of Management,
The Chinese University of Hong Kong

Abstract

Fairness heuristic theory postulates that people use fairness judgments in the processes of reducing uncertainty. We argue that people feel uncertain only when they use social, external standards to evaluate the outcome. When they use self-based, internal standards, the uncertainty feeling is less strong, and fairness heuristic theory may predict no effect of procedural fairness. Under this circumstance, however, the effect of procedural fairness is being predicted by the two-factor theory. It suggests that people use procedural fairness in a hierarchical process to evaluate the decision and the decision-maker. This paper, therefore, answers why people care about justice beyond the context that the fairness heuristic theory applies.