There is strong evidence that in bargaining situations with asymmetric outside options people exhibit self …-serving biases concerning their fairness judgements. Moreover, psychological literature suggests that this can be a driving force of … bargaining impasse. This paper extends the notion of inequity aversion to incorporate self-serving biases due to asymmetric …

' bargaining power converges. Our findings imply that raising the bargaining power of the less powerful party may increase welfare …

advance bargaining theory to incorporate the self-serving use of equity. Agents are predicted to push equity principles which … benefit them more than other parties, in particular those which are disadvantageous to parties with large bargaining power … fairness concerns and in order to facilitate the negotiations …

Parties in a bargaining situation may perceive guilt, a utility loss caused by receiving the larger share that is … modeled in some social preferences. I extend Rubinstein (1982)´s solution of the open-ended alternating-offer bargaining … bargaining parties still reach agreement in the first period. If guilt is strong, they split the bargaining surplus equally. In …

bargaining theories - based on notions of fairness or of imposed bargaining procedures - with emphasis on the fragility of their … agreement is reached. Theorists have solved the bargaining problem, but only by the imposition of strong, artificial and … imposed bargaining solutions in politics and corporation finance. There follows a critical examination of the principal …

growing importance on how fairness affects behavior, and this experiment provides a useful, fun, and engaging way in which a … different subjective weights on concerns for fairness versus money. Second, theories that incorporate concerns for fairness into … purchase fairness (or equality) individuals purchase more of it. The classroom results can motivate discussion of a downward …

are struck. We have no explanation of bargaining, comparable to the general equilibrium in the economy, accounting for … essential features of bargaining as we know it with reference to universal self-interested behaviour subject only to economy …-wide rules. This claim is supported here in a survey of the principal models of bargaining: as a reflection of a shared sense of …

systematically refutes the self-interest hypothesis and suggests that many people are strongly motivated by concerns for fairness and … insights into the nature of preferences and into the relative performance of competing theories of fairness. The purpose of …

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … concerned about fairness. Conversely, contracts that are doomed to fail when there are only selfish actors provide powerful …