... reference-point comparisons − changes when contract performance is not automatic, and what this implies for the relative performance of long-term contracts versus spot contracting. Design/methodology/approach I extend the H&S framework by introducing a date-3 enforcement/exercise decision: after...

... with similar characteristics. We find that unfairly paid individuals earn significantly less than fairly paid counterparts. This suggests that unfairness perceptions with respect to wages are based on sound income comparisons with peers. We also contribute findings to the literature on reference points. When...