FEEM working papers "Note di lavoro" series
2006 .080

Inequity Aversion May Increase Inequity

Authors: Maria Montero
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Type: Journal
Keywords: Noncooperative Bargaining,Coalition Formation,Inequity Aversion
JEL n.: A13,C78
JEL: The Economic Journal
Pages: Vol. 117, No. 519, pp. C192-C204(13)
Date: 03/2007


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 due to the analogy between inequity aversion and risk aversion. Inequity aversion may also affect comparative statics: the advantage of being proposer can decrease as players become more impatient.

Download file
Download PDF file

FEEM Newsletter & Update

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter & Update. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree