We explore the contribution of reciprocity and other non selfish motives to the political viability of the modern welfare state. In the advanced economies, a substantial fraction of total income is regularly transferred from the better off to the less well off, with the approval of the...

In this paper, we argue that important labor market phenomena can be better understood if one takes (i) the inherent incompleteness and relational nature of most employment contracts and (ii) the existence of reference-dependent fairness concerns among a substantial share of the population into...

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...