Montero, Maria - Fondazione ENI Enrico Mattei (FEEM) - 2006
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 …