One hundred eighty‐two University of Arizona employees each participated in one of two field studies of the valuation of fringe benefits. Findings included: (a) a lack of employee knowledge regarding employer cost and market value of the studied benefit, and (b) significant undervaluation of the benefit by employees. These findings are consistent with the hypothesis that employee benefit valuations anchor on employee contributions. Implications for practitioners and suggestions for further research are discussed.
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Wilson et al. (1985) studied this question.
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