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On Inequity Aversion - A Reply to Binmore and Shaked

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Listed author(s):
  • 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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File URL: https://epub.ub.uni-muenchen.de/13296/1/256.pdf
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Paper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 256.

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Date of creation: Feb 2009
Handle: RePEc:trf:wpaper:256
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Keywords: Experiments; other-regarding preferences; inequity aversion;

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Find related papers by JEL classification:
  • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
  • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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