incompleteness and relational nature of most employment contracts and (ii) the existence of reference-dependent fairness concerns … among a substantial share of the population into account. Theory shows and experiments confirm, that even if fairness … fairness on effort, derive predictions from our approach for entry-level wages and incumbent workers' wages, confront these …

payment. We find that the consumers exhibit considerable fairness towards the workers by buying from the firm with the higher … average wages despite its significant crowding-out effects on consumers' fairness concerns. Abolishing a minimum wage crowds … in consumers' fairness concerns, but crowding in is not sufficient to avoid overall negative effects on the workers …

We formulate nominal wage adjustment by incorporating various concepts of fairness. By applying it into a continuous …

-applicable model of path-dependent fairness preferences, in which past experiences shape preferences, and we experimentally test the …' fairness concerns, making them more likely to accept transactions in which they receive a low share of the surplus. Consistent …