This study explored the notion that children allocate rewards according to an equity norm when competition is low, but yield to in group loyalties when it is high. In a 2×2×2 factorial design, male and female "supervisors" allocated rewards to a male and female worker under high or low competition conditions. For half the subjects, the same-sex worker was more productive; other subjects saw the opposite-sex worker win. Results indicated that subjects allocated equitably to same- and opposite-sex workers in the low competition condition. In the high competition condition, female subjects increased their allocations to the more productive female worker; male subjects gave her less than she deserved. Implications of these results for future research were discussed.
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