Acknowledging that individuals dislike having low relative income renders trade less attractive when seen as a technology that integrates two economies by merging separate social spheres into one. We define a “trembling trade” as a situation in which gains from trade are less than losses in...

Political polarization has ruptured the fabric of U.S. society. The focus of this paper is to examine various layers of (non-)strategic decision-making that are plausibly affected by political polarization through the lens of one's feelings of hate and love for Donald J. Trump. In several...

Economic theory and empirical evidence establish that economic preferences predict behavior and life outcomes for children, adolescents, and adults. In this paper, we use novel data on 4,282 siblings aged 6 to 16 that combine incentivized measures of time, risk, and social preferences with...

How should we aggregate the ex ante preferences of Bayesian agents with heterogeneous beliefs? Suppose the state of the world is described by a random process that unfolds over time. Different agents have different beliefs about the probabilistic laws governing this process. As new information...

This paper examines the representation and explicit description of social welfare orders on infinite utility streams. It is assumed that the social welfare orders under investigation satisfy upper asymptotic Pareto and anonymity axioms. We prove that there exists no real-valued representation of...

In past decades, significant work in behavioural economics has decisively revealed the limitations of the human agency model known as Homo Economicus, whereby humans are purely driven by material self-interest.1 These behavioural findings are, however, far from integrated in mainstream economic...

This paper investigates the impact of social preferences and information about the value chain on the willingness to pay (WTP) for Fair-trade products. More specifically, the perceived social and economic benefits for Fair-trade farmers are analyzed in order to study whether altruistic...

We propose and axiomatically characterize a family of welfare criteria that prioritize individuals making larger sacrifices. By combining efficiency with a concern for equality of sacrifice, our criteria avoid serious shortcomings of utilitarianism. We illustrate our results within the...

Why do individuals take different decisions when confronted with similar choices? This paper investigates whether the answer lies in an evolutionary process. Our analysis builds on recent work in evolutionary game theory showing the superiority of a given type of preferences, homo moralis, in...