On Inequity Aversion: A Reply to Binmore and Shaked
Posted: 10 Mar 2009
Date Written: February 4, 2009
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.
Keywords: Experiments, other-regarding preferences, inequity aversion
JEL Classification: B41, C90
Suggested Citation: Suggested Citation