extent of their fairness concerns. Fairness is modelled as inequity aversion, where fair-minded workers suffer if their … colleagues get more income net of production costs. Screening workers with equal productivity but different fairness concerns is … the fraction of fair-minded workers. As a result, fairness might influence the employment contracts of all workers …

We address a basic diffculty with incorporating fairness into standard utilitarian choice theories. Standard … randomize. Our results indicate that fairness concerns are conducive to behavioral anomalies that the standard utilitarian model …