Equity Aversion : Social Norms and the Desire to be Ahead

@inproceedings{Fershtman2012EquityA,
  title={Equity Aversion : Social Norms and the Desire to be Ahead},
  author={Chaim Fershtman and Uri Gneezy and John List},
  year={2012}
}
Inequity aversion models have dominated the behavioral economics landscape in the last decade. This study uses variants of dictator and trust games to provide empirical content to these models. We manipulate market features—such as competition over resources—to demonstrate that extant models cannot explain realistic manipulations of either game. For example, we show that if socially acceptable actions provide one player with a greater portion of the rents, she will put forth extra effort to… CONTINUE READING

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