Optimal incentive contracts under loss aversion and inequity aversion
Sign Up to like & getrecommendations! Published in 2019 at "Fuzzy Optimization and Decision Making"
DOI: 10.1007/s10700-018-9288-1
Abstract: This paper studies a model of principal-agent problem under loss aversion and inequity aversion. The model analyzes how loss aversion and inequity aversion affect the wage structure in optimal contract design. The results demonstrate that… read more here.
Keywords: aversion; wage; loss aversion; inequity aversion ... See more keywords
Children’s collaboration induces fairness rather than generosity
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DOI: 10.1016/j.cognition.2017.07.006
Abstract: Children across diverse societies reject resource allocations that place them at a disadvantage (disadvantageous inequity aversion; DI). In certain societies, older children also reject advantageous allocations (advantageous inequity aversion; AI). Other work demonstrates that after… read more here.
Keywords: inequity aversion; induces fairness; collaboration induces; children collaboration ... See more keywords
Nonlinear pricing under inequity aversion
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DOI: 10.1016/j.jebo.2019.11.013
Abstract: Abstract We consider a monopoly which practices nonlinear pricing, where buyers may have inequity-averse preferences. Each buyer has a valuation for the good, drawn from a distribution. The monopoly knows the distribution but not the… read more here.
Keywords: pricing inequity; nonlinear pricing; inequity averse; inequity ... See more keywords