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 …

located at the bottom of the income distribution, where risk aversion cannot play any role. …

fairness makes it focal or because many individuals dislike payoff inequities, as abundant experimental evidence suggests. In … group of players who either go for the risk dominant equilibrium or act in a boundedly rational manner. This heterogeneity …

Willingness to take risk depends on whether the risk affects others as well as oneself and on how the risk affects oneś … apparent whether the unfair safe social outcome benefits them or the other. Subjects are also more risk averse when facing … tendency to avoid social lotteries that impose a risk on the other. An attempt to reconcile those findings with standard models …

concerns and risk aversion. Mainly, the authors argue that behavioral factors (i.e., fairness concern and risk aversion) should … retailer have fairness concern; the second is both manufacturer and retailer have risk aversion and the final is manufacturer … theory. The results showthat fairness and risk aversion change the optimal pricing strategy, which affects the expected …