What Can Economists Explain by Taking into Account People’s Perceptions of Fairness: Punishing Cheats, Bargaining Impasse, and Self-Perpetuating Inequalities
Published By: HDR 2006-World Bank on eSS | Published Date: November, 15 , 2005Evidence abounds that individuals have preferences for being fairly treated and
treating others fairly. These preferences do not affect economic outcomes in competitive markets with standardized products. They do affect economic
outcomes in a wide variety of other settings where information is imperfect or
enforcement is costly. This paper reviews experimental evidence that overwhelmingly refutes the hypothesis that individuals are concerned only
with their material self-interest and shows why in some competitive
environments, the self-interest hypothesis is nevertheless so successful.
[Background Paper for Human Development Report 2006]
Author(s): Karla Hoff | Posted on: Oct 03, 2007 | Views(1994) | Download (566)