Parties in a bargaining situation may perceive guilt, a utility loss caused by receiving the larger share that is modeled in some social preferences. I extend Rubinstein (1982)´s solution of the open-ended alternating-offer bargaining problem for self-interested bargainers to a game with...

Experimental evidence suggests the size of the foregone outside option of the first mover does not affect the behavior of the second mover in the lost wallet game. In this paper we experimentally compare the behavior of subjects when they face an outside option with unequal payoffs, i.e., the...

This paper revisits the fair and optimal allocation mechanism (Sun and Yang, Economics Letters 81:73-79, 2003) and demonstrates that it is coalitionally strategy-proof. The proof is valid for general preferences, it is simple and it is short.

This paper analyzes the impact of a politician's re-election concerns on the truthfulness of a bureaucrat's advice in a two-period cheap-talk model of information transmission under the merit system. I demonstrate that the politician follows the bureaucrat's advice when his re-election concerns...

This paper aims to measure the degree of income mobility in Brazil in the 1987-2005 period. To achieve that, we consider the axiomatic mobility approach and the dynamic tool suggested by Aebi et al. (1999). The transition probability matrix calculations and the mobility index indicate that...

This paper examines the recent trends in household income volatility in the United States, Germany and Great Britain, and compares household income volatility with individual income volatility. I estimate a formal error components model using the Cross-national Equivalence File from 1979 to...

It is shown that convergence in inequality has been significantly slower amongst developing countries.

In this note we introduce a family of functions that various theoretical results have revealed as useful mobility measures. These functions have enabled us to circumvent an impossibility result obtained by Shorrocks (1978), by adapting one of his axioms to the context of mobility as movement. A...

The personal income distribution (PID) above the Pareto threshold is studied and modeled. A microeconomic model is proposed to simulate the PID and its evolution below and above the Pareto income threshold. The model balances processes of income production and dissipation for any person above 15...

In this article, polarization measurement is presented as a useful tool for characterizing the net transfers of income between individuals caused by a tax reform. The bipolarization measure, which considers just two poles and involves the disappearance of the middle class, may complement...