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Budget-balance, fairness and minimal manipulability

Andersson, Tommy; Ehlers, Lars H.; Svensson, Lars-Gunnar - In: Theoretical economics : TE ; an open access journal in … 9 (2014) 3, pp. 753-777

A common real-life problem is to fairly allocate a number of indivisible objects and a fixed amount of money among a group of agents. Fairness requires that each agent weakly prefers his consumption bundle to any other agent's bundle. In this context, fairness is incompatible with budget-balance...

Persistent link: https://www.econbiz.de/10011674186

Coalition formation with optimal transfers when players are heterogeneous and inequality averse

Rogna, Marco; Vogt, Carla - 2020

Obtaining significant levels of cooperation in public good and environmental games, under the assumption of players being purely selfish, is usually prevented by the problem of freeriding. Coalitions, in fact, generally fail to be internally stable and this cause a serious underprovision of the...

Persistent link: https://www.econbiz.de/10012285892

A strategic justification of the constrained equal awards rule through a procedurally fair multilateral bargaining game

Hagiwara, Makoto - 2020

In a claims problem, we propose a new game for strategic justification of the constrained equal awards rule. In contrast to Li and Ju (Mimeo, 2016) and Tsay and Yeh (Games and Economic Behavior, 113, 515-532, 2019), our game is "procedurally fair" (claimants are treated equally) and...

Persistent link: https://www.econbiz.de/10012847392

Justifying the Lindahl Solution as an Outcome of Fair Cooperation

Buchholz, Wolfgang; Peters, Wolfgang - 2021

The Lindahl equilibrium is mostly motivated by a rather artificial price mechanism. Even though the analogy to a competitive market has been emphasised by Lindahl himself his approach does not directly explain the normative ideas, which are behind this concept. In the present paper we therefore...

Persistent link: https://www.econbiz.de/10013318275

Dividing Justly in Bargaining Problems with Claims : Normative Judgments and Actual Negotiations

Gächter, Simon; Riedl, Arno - 2021

help of a survey and also observe actual agreements in a bargaining experiment with real money at stake. We find that the …

Persistent link: https://www.econbiz.de/10013319305

Contracts and Inequity Aversion

Englmaier, Florian; Wambach, Achim - 2021

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/10013320181

Cooperation in international environmental negotiations due to a preference for equity

Lange, Andreas; Vogt, Carla - 2001

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/10013428398

Ashamed to Be Selfish, Second Version

Dillenberger, David; Sadowski, Philipp - 2009

We study a two-stage choice problem. In the first stage, the decision maker (DM) chooses a set of payoff-allocations between herself and a passive recipient. In the second stage, DM chooses an allocation from the set. The recipient is only aware of the second stage choice. Choosing selfishly in...

Persistent link: https://www.econbiz.de/10014208757

Ashamed to Be Selfish

Sadowski, Philipp; Dillenberger, David - 2010

We study a decision maker (DM) who has preferences over sets of payoff-allocations between herself and a passive recipient, which represent second-stage choice problems. The recipient is only aware of second-stage choice of an allocation. Not choosing the normatively best allocation in the...

Persistent link: https://www.econbiz.de/10014189519

Justice under uncertainty

Cettolin, Elena; Riedl, Arno - 2013

An important element for the public support of policies is their perceived justice. At the same time most policy … choices have uncertain outcomes. We report the results of a first experiment investigating just allocations of resources when … their own risk preferences. The observed allocations are consistent with four different views of justice under uncertainty. …

Persistent link: https://www.econbiz.de/10009766681