redistribution. We study the dynamic evolution of different economies in which redistributive policies, perceptions of fairness …, inequality and growth are jointly determined. We show how including fairness explains various observed correlations between … inequality, redistribution and growth. We also show how different beliefs about fairness can keep two otherwise identical …

In Fairness versus Welfare, we advance the thesis that social policies should be assessed based entirely on their … effects on individuals' well-being. This thesis implies that no independent weight should be accorded to notions of fairness … (other than many purely distributive notions). We support our thesis in three ways: by demonstrating how notions of fairness …

fairness to their consumers. The theory relies on two psychological assumptions. First, customers care about the fairness of …This paper proposes a theory of price rigidity consistent with survey evidence that firms stabilize prices out of … rigid. Embedded in a simple macroeconomic model, our pricing theory produces nonneutral monetary policy, a short …

case and may affect the allocation of litigation costs. Specifically, if the parties litigate to judgment, then the … allocation of litigation costs may depend on how the judgment compares with the special offer. This paper develops a model of …

similarly but differ in their preference intensities. We characterize optimal allocation rules when individual preferences are …