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This paper demonstrates that cooperation in international environmental negotiations can be explained by preferences for equity. Within a N-country prisoner's dilemma in which agents can either cooperate or defect, in addition to the standard non-cooperative equilibrium, cooperation of a large...
Persistent link: https://www.econbiz.de/10011445929
Using the concept of Inequity Aversion we derive in a Moral Hazard setting several results which differ from conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal contracts. Second, there is a strong tendency towards...
Persistent link: https://www.econbiz.de/10011514018
bargaining norms in the case of ultimatum games. To substantiate our claim, we conduct a methodological experiment in which we …
Persistent link: https://www.econbiz.de/10003886856
experiment whether peopleś fairness ideals vary with respect to changes in the order in which they undertake two allocation tasks …
Persistent link: https://www.econbiz.de/10011279775
consequences of their actions for others. We employ a laboratory experiment, using modified dictator games in which a dictator can …
Persistent link: https://www.econbiz.de/10009764955
We compare inequality aversion in individuals and teams by means of both within- and between-subject experimental designs, and we investigate how teams aggregate individual preferences. We find that team decisions reveal less inequality aversion than individual initial proposals in team...
Persistent link: https://www.econbiz.de/10013052703
Meritocracies aspire to reward effort and hard work but promise not to judge individuals by the circumstances they were born into. The choice to work hard is, however, often shaped by circumstances. This study investigates whether people's merit judgments are sensitive to this endogeneity of...
Persistent link: https://www.econbiz.de/10012614805
Meritocracies aspire to reward effort and hard work but promise not to judge individuals by the circumstances they were born into. The choice to work hard is, however, often shaped by circumstances. This study investigates whether people's merit judgments are sensitive to this endogeneity of...
Persistent link: https://www.econbiz.de/10013213511
Substantial evidence has accumulated in recent empirical works on the limited ability of the Nash equilibrium to rationalize observed behavior in many classes of games played by experimental subjects. This realization has led to several attempts aimed at finding tractable equilibrium concepts...
Persistent link: https://www.econbiz.de/10008811006
) Procedural justice – equal treatment of all; (2) Agency – one’s ability to determine his/her income. We do this in a lab … experiment by differentially varying subjects’ ability to influence their earnings. Comparison of ex-post redistribution … decisions of total earnings under different conditions indicate both agency and procedural justice to matter for fairness …
Persistent link: https://www.econbiz.de/10014143490