Three determining factors for economic inequality are self-chosen effort, self-chosen risk, and external circumstances … fairness of inequalities due to self-chosen effort and self-chosen risk, however, are lacking. I study a novel experimental … setting where inequality is due to a choice over effort-provision and a choice over risk-taking. While the resulting …

due to their endorsement of an empirically implausible theory of selfish human motivation. Drawing on anthropological …

conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal …