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The Role of Equality and Efficiency in Social Preferences
Fehr, Ernst; Naef, Michael; Schmidt, Klaus M. - C.E.P.R. Discussion Papers - 2005
Engelmann and Strobel (AER 2004) question the relevance of inequity aversion in simple dictator game experiments claiming that a combination of a preference for efficiency and a Rawlsian motive for helping the least well-off is more important than inequity aversion. We show that these results...
Persistent link: https://www.econbiz.de/10005114463
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Choosing the Stick or the Carrot? Endogenous Institutional Choice in Social Dilemma Situations
Haigner, Stefan; Kocher, Martin; Sutter, Matthias - C.E.P.R. Discussion Papers - 2006
find a large and positive effect of endogenous institutional choice on the level of cooperation in comparison to … exogenously implemented institutions. This suggests that democratic participation rights enhance cooperation in groups. With … endogenous choice, groups typically vote for the reward option, even though punishment is actually more effective in sustaining …
Persistent link: https://www.econbiz.de/10005114368
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Foreign Influence and Welfare
Antràs, Pol; Padró i Miquel, Gerard - C.E.P.R. Discussion Papers - 2008
How do foreign interests influence the policy determination process? What are the welfare implications of such foreign influence? In this paper we develop a model of foreign influence and apply it to the study of optimal tariffs. We develop a two-country voting model of electoral competition,...
Persistent link: https://www.econbiz.de/10005661468
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Exploitation, Altruism, and Social Welfare: An Economic Exploration
Doepke, Matthias - C.E.P.R. Discussion Papers - 2013
Child labor is often condemned as a form of exploitation. I explore how the notion of exploitation, as used in everyday language, can be made precise in economic models of child labor. Exploitation is defined relative to a specific social welfare function. I first show that under the standard...
Persistent link: https://www.econbiz.de/10011084615
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Verified Trust: Reciprocity, Altruism and Noise in Trust Games
Brülhart, Marius; Usunier, Jean-Claude - C.E.P.R. Discussion Papers - 2004
Behavioural economists have come to recognize that reciprocity, the interaction of trust and trustworthiness, is a distinct and economically relevant component of individual preferences alongside selfishness and altruism. This recognition is principally due to observed decisions in experimental...
Persistent link: https://www.econbiz.de/10005788946
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Other-Regarding Preferences in General Equilibrium
Dufwenberg, Martin; Heidhues, Paul; Kirchsteiger, Georg; … - C.E.P.R. Discussion Papers - 2008
We study competitive market outcomes in economies where agents have other-regarding preferences. We identify a separability condition on monotone preferences that is necessary and sufficient for one's own demand to be independent of the allocations and characteristics of other agents in the...
Persistent link: https://www.econbiz.de/10005114265
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Choosing the Joneses: Endogenous Goals and Reference Standards
Falk, Armin; Knell, Markus - C.E.P.R. Discussion Papers - 2004
A growing economic literature stresses the importance of relative comparisons, e.g., for savings and consumption or happiness. In this literature it is usually assumed that reference standards against which people compare themselves are exogenously given. In contrast, findings from social...
Persistent link: https://www.econbiz.de/10005788919
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Should Egalitarians Expropriate Philanthropists?
Dasgupta, Indraneel; Kanbur, Ravi - C.E.P.R. Discussion Papers - 2007
Wealthy individuals often voluntarily provide public goods that the poor also consume. Such philanthropy is perceived as legitimizing one’s wealth. Governments routinely exempt the rich from taxation on grounds of their charitable expenditure. We examine the normative logic of this exemption....
Persistent link: https://www.econbiz.de/10005504401
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Property Crime with Private Protection: A Market-for-Offenses Approach
Hotte, Louis; Valognes, Fabrice; van Ypersele, Tanguy - C.E.P.R. Discussion Papers - 2003
We propose a market-for-offenses model of property crime, which explicitly accounts for protection expenditures among heterogeneous individuals. The crime equilibrium is modeled as a free-access equilibrium in which the match between criminals and victims equates the average returns to crime. We...
Persistent link: https://www.econbiz.de/10005504660
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Community and Class Antagonism
Dasgupta, Indraneel; Kanbur, Ravi - C.E.P.R. Discussion Papers - 2007
We investigate how vertical unity within a community interacts with horizontal class divisions of an unequal income distribution. Community is conceptualized in terms of a public good to which all those in the community have equal access, but from which outsiders are excluded. We formulate the...
Persistent link: https://www.econbiz.de/10005666575