We analyze the Moral Hazard problem, assuming that agents are inequity averse. Our results differ from conventional contract theory and are more in line with empirical findings than standard results. We find: First, inequity aversion alters the structure of optimal contracts. Second, there is a...

We analyze the Moral Hazard problem, assuming that agents are inequity averse. Our results differ from conventional contract theory and are more in line with empirical findings than standard results. We find: First, inequity aversion alters the structure of optimal contracts. Second, there is a...

In the wake of Fiji's coup d'état of 2000, which unleashed an unprecedented level of violence and destruction to the country, the people of Fiji demanded a process of national reconciliation to heal the wounds of the past and build a more peaceful future. Fiji's troubled path to reconciliation...

We study the problem of how to allocate a set of indivisible objects like jobs or houses and an amount of money among a group of people as fairly and as efficiently as possible. A particular constraint for such an allocation is that every person should be assigned with the same number of objects...

This paper studies the problem of how to distribute a set of indivisible objects with an amount M of money among a number of agents in a fair way. We allow any number of agents and objects. Objects can be desirable or undesirable and the amount of money can be negative as well. In case M is...

One set of n objects of type I, another set of n objects of type II, and an amount M of money is to be completely allocated among n agents in such a way that each agent gets one object of each type with some amount of money. We propose a new solution concept to this problem called a perfectly...

This paper draws on evidence from an internal attitude survey in the freight-handling terminals of a unionized trucking firm to investigate the effect of local labor market conditions on employee wage-fairness perceptions. The key element of our research design is that local managers have no...

This paper draws on evidence from an internal attitude survey in the freight-handling terminals of a unionized trucking firm to investigate the effect of local labor market conditions on employee wage-fairness perceptions. The key element of our research design is that local managers have no...

This Article argues that a more grounded and nuanced understanding of women's lived realities requires legal scholars to engage geography. Because spatial aspects of women's lives implicate inequality and moral agency, they have direct relevance to an array of legal issues. The Article thus...

Louis Kaplow and Steven Shavell recently argued in their article, "Fairness Versus Welfare" that legal decision-makers should exclusively apply welfare economics when determining policy, ignoring what they term "fairness" theories (that is, everything other than welfare economics). This paper...