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On inequity aversion: A reply to Binmore and Shaked

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  • Fehr, Ernst
  • Schmidt, Klaus M.

Abstract

In this paper we reply to Binmore and Shaked's criticism of the Fehr-Schmidt model of inequity aversion. We put the theory and their arguments into perspective and show that their criticism is not substantiated. Finally, we briefly comment on the main challenges for future research on social preferences.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 73 (2010)
Issue (Month): 1 (January)
Pages: 101-108

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Handle: RePEc:eee:jeborg:v:73:y:2010:i:1:p:101-108

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Keywords: Experiments Other-regarding preferences Inequity aversion;

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References

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Citations

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Cited by:
  1. Leonardo Becchetti & Maurizio Fiaschetti & Giancarlo Marini, 2012. "Card Games and Financial Crises," CEIS Research Paper 256, Tor Vergata University, CEIS, revised 09 Oct 2012.
  2. Breitmoser, Yves & Tan, Jonathan H.W., 2014. "Reference Dependent Altruism," MPRA Paper 52774, University Library of Munich, Germany.
  3. Andrew E. Clark & Conchita D'Ambrosio, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," PSE Working Papers halshs-00967938, HAL.
  4. Simon Halliday, 2011. "Rarer Actions: Giving and Taking in Third-Party Punishment Games," Working Papers 211, Economic Research Southern Africa.
  5. Fischer, Sven & Güth, Werner, 2012. "Effects of exclusion on acceptance in ultimatum games," Journal of Economic Psychology, Elsevier, vol. 33(6), pages 1100-1114.
  6. Christoph Graf & Rudolf Vetschera & Yingchao Zhang, 2013. "Parameters of social preference functions: measurement and external validity," Theory and Decision, Springer, vol. 74(3), pages 357-382, March.
  7. Oliver Kirchkamp & Ulrike Vollstädt, 2013. "Bargaining with Two-Person-Groups - On the Insignificance of the Patient Partner," CESifo Working Paper Series 4150, CESifo Group Munich.
  8. Sanjit Dhami & Ali al-Nowaihi, 2013. "Evidential equilibria: Heuristics and biases in static games," Discussion Papers in Economics 13/25, Department of Economics, University of Leicester.
  9. Blanco, Mariana & Engelmann, Dirk & Normann, Hans Theo, 2011. "A within-subject analysis of other-regarding preferences," Games and Economic Behavior, Elsevier, vol. 72(2), pages 321-338, June.
  10. Dreber, Anna & Fudenberg, Drew & Rand, David G., 2014. "Who cooperates in repeated games: The role of altruism, inequity aversion, and demographics," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 41-55.
  11. Sven Fischer & Werner Güth, 2011. "Effects of exclusion on social preferences," Jena Economic Research Papers 2011-053, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  12. D. Urbig & G.U. Weitzel & S. Rosenkranz & A. van Witteloostuijn, 2011. "Exploiting opportunities at all cost? Entrepreneurial intent and externalities," Working Papers 11-05, Utrecht School of Economics.
  13. David Colander & Richard P.F. Holt & J. Barkley Rosser, 2010. "The Complexity Era in Economics," Middlebury College Working Paper Series 1001, Middlebury College, Department of Economics.
  14. Sven Fischer & Werner Güth, 2011. "Effects of exclusion on social preferences," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2011_34, Max Planck Institute for Research on Collective Goods.
  15. Breitmoser, Yves, 2013. "Estimation of social preferences in generalized dictator games," Economics Letters, Elsevier, vol. 121(2), pages 192-197.

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