Consider a problem in which the cost of building an irrigation canal has to be divided among a set of people. Each person has different needs. When the needs of two or more people overlap, there is congestion. In problems without congestion, a unique canal serves all the people and it is enough...

We experimentally investigate multiple notions of equity in ultimatum bargaining with asymmetric outside options. Building on the generalized equity principle formulated by Selten (1978), we derive three different equity rules that can explain 43% of all offers. Our within-subject design further...

This paper analyses lawyer's choices of law in international sales contracts. It identifies key reasons for opting in or out of the CISG across different jurisdictions. The paper then examines aspects of this choice from economic and psychological perspectives: from the ability to externalize...

This paper is an application of a new Shapley income decomposition methodology, in which we isolate two subjective factors in income differences - race and gender - that contribute to income inequality within the population of blacks and whites in the United States over the period 2005-2017. We...

We suggest that the propensity for altruistic punishment and reward is an emergent property that has co-evolved with cooperation and has provided efficient feedback measured in social dilemma and public good experiments. A simple cost/benefit analysis at the level of single agents, who...

In this paper we consider a model with multiple jurisdictions where each formed jurisdiction selects a public project from the given uni-dimensional set, equally shares its cost among its members and places the project at the location of its median resident. We examine a cooperative concept of...

This paper studies egalitarianism in the context of nontransferable utility games by introducing and analyzing the egalitarian value. This new solution concept is based on an egalitarian negotiation procedure in which egalitarian opportunities of coalitions are explicitly taken into account. We...

The Constrained Equal Awards and Equal Losses rules are traditional ways to solve bankruptcy problems. These rules are characterized by two parameters α and β that represent, respectively, the maximum amount a claimant receives, or the maximum amount a claimant loses. Moreover, these rules...