Abstract

http://ssrn.com/abstract=1112163
 
 

References (31)



 


 



How Exposure to Markets Can Favor Inequity-Averse Preferences


Robertas Zubrickas


University of Zurich

September 18, 2008


Abstract:     
This paper shows how non-individualistic preferences can be individual fitness maximizing in market-integrated societies. In the model, individuals share an endowment, which is used for consumption and/or purchase of goods on the external market. We show that inequity aversion about endowment distribution can be an optimal response to merchants' price discrimination. Then, assuming that increased consumption means increased individual fitness, we argue that evolutionary selection can favor inequity-averse preferences. We also argue that our model can explain an empirical finding of Henrich et al. (2004) about the positive effect of a society's exposure to markets on its members' sociality.

Number of Pages in PDF File: 21

Keywords: Inequity aversion, endogenous preferences, preference evolution, market exposure, cross-societal differences

JEL Classification: A10, C73, D63

working papers series


Download This Paper

Date posted: March 26, 2008 ; Last revised: June 8, 2010

Suggested Citation

Zubrickas, Robertas, How Exposure to Markets Can Favor Inequity-Averse Preferences (September 18, 2008). Available at SSRN: http://ssrn.com/abstract=1112163 or http://dx.doi.org/10.2139/ssrn.1112163

Contact Information

Robertas Zubrickas (Contact Author)
University of Zurich ( email )
Rämistrasse 71
Zürich, CH-8006
Switzerland
Feedback to SSRN


Paper statistics
Abstract Views: 328
Downloads: 57
Download Rank: 217,994
References:  31

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.343 seconds