Yang, Y., Onderstal, S. and Schram, A. (2016). Inequity Aversion Revisited Journal of Economic Psychology, 54:1--16.

Using a laboratory experiment, we study the predictive power of the Fehr–Schmidt (1999) model of inequity aversion and its robustness to reciprocity and stakes. We find stronger evidence for the model{\textquoteright}s predictive power at the individual level than what the existing literature suggests. This finding is robust to stakes. However, the model{\textquoteright}s predictive power is highly reduced if subjects can reciprocate others{\textquoteright} actions. This suggests that parameter estimates obtained in an environment that allows for reciprocal responses yield a bias in the parameter estimates. In particular, previous estimates (especially of the disutility of disadvantageous inequity aversion) may overestimate the importance of inequity aversion.