Chernomaz, Kirill - In: Economics Bulletin 32 (2012) 3, pp. 2500-2510
In this paper we solve a parametric moral hazard model that incorporates risk and inequity aversion. In the model, the … avoidance. It also suggests that inequity aversion may amplify variability of the worker's compensation. Data from a within …-subject experiment is used to estimate the unobservable parameter of inequity aversion. Experimental results generally support the model …