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The Prince and the Pauper: Fairness through Thick and Thin Veils of Ignorance

Leong, Chee Kian - CESifo - 2014

fairness and redistributional choices. A fortune reversal is generally perceived to be fair behind a thick VOI, but deemed … exists between the perception of fairness and the certainty levels about social position. A 50-50 split is preferred with …

Persistent link: https://www.econbiz.de/10010877830

Fair and Efficient Taxation under Partial Control: Theory and Evidence

Ooghe, Erwin; Peichl, Andreas - CESifo - 2011

There is clear evidence that fairness plays a role in redistribution. Individuals want to compensate others for their … misfortune, while they allow them to enjoy the fruits of their effort. This paper introduces fairness in a tax-benefit scheme … fairness test, whereas the Baltic and Anglo-Saxon countries (including the US) perform worst. Our paper provides a new way to …

Persistent link: https://www.econbiz.de/10009221559

Envy, Guilt, and the Phillips Curve

Ahrens, Steffen; Snower, Dennis - CESifo - 2012

We incorporate inequity aversion into an otherwise standard New Keynesian dynamic equilibrium model with Calvo wage contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high incomes experience guilt. The former seek to raise their...

Persistent link: https://www.econbiz.de/10009645645

Fairness Spillovers - The Case of Taxation

Cornelissen, Thomas; Himmler, Oliver; König, Tobias - CESifo - 2010

that such 'fairness spillovers' can incur large economic costs: A belief that there is unfairness in taxation in the sense …

Persistent link: https://www.econbiz.de/10008727283

Use and Abuse of Authority - A Behavioral Foundation of the Employment Relation

Bartling, Björn; Fehr, Ernst; Schmidt, Klaus - CESifo - 2013

, inducing them to resist entering into employment contracts. This resistance to employment contracts vanishes if fairness …

Persistent link: https://www.econbiz.de/10010604419

A Theory of Reciprocity

Falk, Armin; Fischbacher, Urs - CESifo - 2001

This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action. The theory...

Persistent link: https://www.econbiz.de/10005765909

Fairness and the Optimal Allocation of Ownership Rights

Fehr, Ernst; Kremhelmer, Susanne; Schmidt, Klaus - CESifo - 2005

We report on several experiments on the optimal allocation of ownership rights. The experiments confirm the property rights approach by showing that the ownership structure affects relationship-specific investments and that subjects attain the most efficient ownership allocation despite starting...

Persistent link: https://www.econbiz.de/10005765975

Justifying the Lindahl Solution as an Outcome of Fair Cooperation

Buchholz, Wolfgang; Peters, Wolfgang - CESifo - 2005

distributional equity. Fairness among agents with different preferences is taken into account by considering their marginal …

Persistent link: https://www.econbiz.de/10005766038

Contracts and Inequity Aversion

Englmaier, Florian; Wambach, Achim - CESifo - 2002

Using the concept of Inequity Aversion we derive in a Moral Hazard setting several results which differ from conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal contracts. Second, there is a strong tendency towards...

Persistent link: https://www.econbiz.de/10005766116

Preferences for Redistribution and Pensions. What can we Learn from Experiments?

Tausch, Franziska; Potters, Jan; Riedl, Arno - CESifo - 2010

Redistribution is an inevitable feature of collective pension schemes. Nevertheless, it is still an open question what people’s preferences are regarding this form of redistribution. This paper reviews experimental evidence on preferences regarding redistribution and asks what this evidence...

Persistent link: https://www.econbiz.de/10008498990