• 1 Introduction
  • 2 Empirical Foundations of Fairness and Reciprocity2.1 Where does Fairness matter?
  • 2.2 Experimental Evidence
  • 2.3 Interpretation of the Evidence
  • 3 Theories of Fairness and Reciprocity
  • 3.1 Social Preferences
  • 3.1.4 Altruism and Spitefulness
  • 3.2 Models of Intention-Based Reciprocity
  • 3.3 Axiomatic Approaches
  • 4 Discriminating between Theories of Fairness
  • 4.1 Who are the Relevant Reference Actors?
  • 4.2 Equality versus Efficiency
  • 4.3 Revenge versus Inequity Reduction
  • 4.4 Does Kindness Trigger Rewards
  • 4.5 Summary and Outlook
  • 5 Economic Applications
  • 5.1 Competition and Fairness – When Does Fairness Matter?
  • 5.2 Endogenous Incomplete Contracts
  • 5.3 The Optimal Allocation of Property Rights
  • 6 Conclusions