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The Bright Side of Inequity Aversion

Management Science, 2023
Modern consumers are concerned about not only their material payoff, but also the fairness of the transaction when making purchasing decisions. In this paper, we investigate how consumers’ inequity aversion affects a manufacturer who sources inputs from upstream suppliers.
Xi Li, Xinlong Li
exaly   +2 more sources

The Development of Inequity Aversion

Psychological Science, 2016
Children and adults respond negatively to inequity. Traditional accounts of inequity aversion suggest that as children mature into adults, they become less likely to endorse all forms of inequity. We challenge the idea that children have a unified concern with inequity that simply becomes stronger with age.
Shoham Choshen-Hillel   +2 more
exaly   +2 more sources

Pigouvian Tax Aversion and Inequity Aversion in the Lab [PDF]

open access: possibleEconomics Bulletin, 2010
We use an experimental market with externalities to test whether inequality aversion could help explain the popularity of earmarking tax revenues. We find that voter opposition is not fully explained by material self-interest: Results indicate that preferences for fairness influence voting behavior, with greater inequality in tax revenue distribution ...
Steffen Kallbekken   +2 more
openaire   +1 more source

Inequity aversion revisited

Journal of Economic Psychology, 2016
We provide the first systematic study of the robustness of parameter estimates for the Fehr-Schmidt (1999) model of inequity aversion with respect to (i) the occurrence of efficiency concerns; (ii) the scale of payoffs; and (iii) the game used (i.e., cross-game consistency).
Yang, Y., Onderstal, S., Schram, A.
openaire   +5 more sources

Inequality Aversion versus Risk Aversion

Economica, 2003
Inequality aversion and risk‐aversion are widely assumed in economic models; however existing economic literature fails to distinguish between the two. This paper presents methodology and a laboratory experiment, which separates inequality aversion from risk aversion.
Yoram Kroll, Liema Davidovitz
openaire   +1 more source

Inequity Aversion in Tournaments [PDF]

open access: possibleSSRN Electronic Journal, 2003
We consider the cost of providing incentives using tournaments when workers are inequity averse and performance evaluation is costly. The principal never benefits from empathy to align incentives in a moral hazard framework between the workers, but he may benefit from their propensity for envy depending on the costs of assessing performance.
Dominique Demougin, Claude Fluet
openaire   +1 more source

Inequality aversion, impartiality and utilitarianism

Social Choice and Welfare, 2004
zbMATH Open Web Interface contents unavailable due to conflicting licenses.
openaire   +1 more source

Preference for Randomization - Ambiguity Aversion and Inequality Aversion [PDF]

open access: possible, 2010
In Anscombe and Aumann's (1963) domain, there are two types of mixtures. One is an ex-ante mixture, or a lottery on acts. The other is an ex-post mixture, or a state-wise mixture of acts. These two mixtures have been assumed to be indifferent under the Reversal of Order axiom.
openaire   +2 more sources

Measuring international inequity aversion [PDF]

open access: possible, 2008
I measure the rate of aversion to inequality in consumption as expressed in the development aid given by rich countries to poor ones between 1965 and 2005. Over time, OECD countries have become less concerned about international inequity. Even for a fairly leaky bucket, the consumption rate of inequity aversion is less than the rate of risk aversion ...
openaire   +2 more sources

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