The relationship between risk in the environment, risk aversion and inequality aversion is not well understood …. Theories of fairness have typically assumed that pie sizes are known ex-ante. Pie sizes are, however, rarely known ex ante … with varying degrees of risk (“endowment risk”) influence individual behavior. We derive theoretical predictions for these …

Theories of fairness have typically used the assumption of ex-ante known pie size. Pie size, however, is rarely known … influence of ex-ante unknown pie size of varying degrees of risk on individual behavior. We derive theoretical predictions for … two of these games using utility functions that capture additively separable constant relative risk aversion and inequity …

, risk aversion and preferred bonus scheme (team or individual). The economic model makes a strong prediction in this case … preference is risk aversion. Workers lagging behind the team average should vote for a team bonus. The economic model predicts … individual bonuses, and risk aversion is associated with a preference for a team bonus. There is, however, one noticeable …

, risk aversion and preferred bonus scheme (team or individual). Standard economics make a strong prediction in this case … this preference is risk aversion. The economic model predicts the case at hand fairly well. Relative work place … productivity is strongly associated with a preference for individual bonuses, and risk aversion is associated with a preference for …