In this paper we reply to Binmore and Shaked's criticism of the Fehr-Schmidt model of inequity aversion. We put the theory and their arguments into perspective and show that their criticism is not substantiated. Finally, we briefly comment on the main challenges for future research on social...

In this paper we reply to Binmore and Shaked's criticism of the Fehr-Schmidt model of inequity aversion. We put the theory and their arguments into perspective and show that their criticism is not substantiated. Finally, we briefly comment on the main challenges for future research on social...

Recommended readings (Machine generated): 1. John E. Roemer (1986), 'Equality of Resources Implies Equality of Welfare', Quarterly Journal of Economics, 101 (4), November, 751-84 -- 2. Marc Fleurbaey (1995), 'Three Solutions for the Compensation Problem', Journal of Economic Theory, 65 (2),...

We suggest that one individual holds multiple degrees of belief about an outcome, given the evidence. We then investigate the implications of such noisy probabilities for a buyer and a seller of binary options and find the odds agreed upon to ensure zero-expectation betting, differ from those...