desert, so desert guilt generates behavior consistent with both positive and negative reciprocity and may underpin social … depending on whether preferences exhibit desert elation or desert guilt. Our notion of desert generalizes distributional concern … of a meritocratic notion of desert under which team members care about receiving what they feel they deserve. Team …

averse around their meritocratically determined endogenous reference points. In a fair tournament sufficiently large desert … average. In an unfair tournament, where one agent is advantaged, the equilibrium is symmetric in the absence of desert, but … asymmetric in the presence of desert. We find that desert concerns can undermine the standard conclusion that competition for a …

Parties in a bargaining situation may perceive guilt, a utility loss caused by receiving the larger share that is … problem for self-interested bargainers to a game with equally patient bargainers that exhibit a similar degree of guilt. The … bargaining parties still reach agreement in the first period. If guilt is strong, they split the bargaining surplus equally. In …

being worse off and guilt if being better off, but they still reach agreement in the first period under complete information …. If the perceived guilt is strong, then the inequality-averse bargainers split the bargaining surplus equally regardless … of their degree of envy. If guilt is weak, then the agreed split is tilted away from the Rubinstein division towards a …

not only profit maximizers, but also have preferences for reciprocity or are averse to inequity. A reciprocal manager …” outcomes under a constructive reciprocity equilibrium. By contrast, Stackelberg warfare may emerge under a destructive … reciprocity equilibrium. If there is Cournot competition between firms and their managers are averse to advantageous …

parameters. The state could be fair, superior or inferior. Individuals in a fair state have zero equity-bias and split the pie … evenly. Those in a superior (inferior) state have positive (negative) equity-bias and value more (less) than fair …/structure assigns one of the three states to players which lead to individual specific valuation of equity. Prediction about outcomes …