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- Title
Inequity Aversion May Increase Inequity.
- Authors
Montero, Maria
- Abstract
Inequity aversion models have been used to explain equitable payoff divisions in bargaining games. I show that inequity aversion can actually increase the asymmetry of payoff division if unanimity is not required. This is because responders may be willing to accept a lower share rather than risk being left out. Inequity aversion may also affect comparative statics: the advantage of being the proposer can decrease as players become more impatient.
- Subjects
GAME theory; STATISTICAL decision making; DECISION theory; SELFISHNESS; ULTIMATUMS (International relations); INDUSTRIAL psychology
- Publication
Economic Journal, 2007, Vol 117, Issue 519, pC192
- ISSN
0013-0133
- Publication type
Article
- DOI
10.1111/j.1468-0297.2007.02041.x