EQUITY THEORY VERSUS EXPECTANCY-THEORY - THE CASE OF MAJOR-LEAGUE BASEBALL FREE AGENTS

Equity theory and expectancy theory make different predictions under conditions of perceived underreward coupled with strong performance-outcome expectancies. A synthesis of these theories is proposed: Equity performance effects depend on the strength of the performance-outcome expectancy. Free-agent nonpitchers in the 1977-1980 baseball seasons were compared with a random sample of nonpitchers. These free agents probably felt underrewarded before entering the free-agent market yet probably also had expectations of higher salaries after becoming free agents. These competing motivations were hypothesized to affect individual performance. Two types of performance were assessed. Batting average, which had a weaker relation to salary outcome, declined in the year before free agency, whereas home run ratio, which had a stronger relation with salary outcome, did not decline. These results are consistent with the proposed synthesis.