We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … concerned about fairness. Conversely, contracts that are doomed to fail when there are only selfish actors provide powerful … incentives and become superior when there are also fair-minded players. These predictions are strongly supported by the results …

systematically refutes the self-interest hypothesis and suggests that many people are strongly motivated by concerns for fairness and … insights into the nature of preferences and into the relative performance of competing theories of fairness. The purpose of …

conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal …

tournament incentives. We find that pay inequality has a strong negative effect on perceived fairness. Controlling for pay …How do different characteristics of pay-for-performance schemes affect fairness perceptions? In two studies, we … systematically consider three major classes of incentive schemes: continuous piece rate incentives, discrete bonus schemes, and …

This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind … ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by … the intention underlying this action. The theory explains the relevant stylized facts of a wide range of experimental …

In this paper we show that a simple model of fairness preferences explains major experimental regularities of common …