Ontology highlight
ABSTRACT:
SUBMITTER: Benjamin DJ
PROVIDER: S-EPMC4316380 | biostudies-literature | 2015
REPOSITORIES: biostudies-literature
American economic journal. Microeconomics 20150101 1
Under what conditions do distributional preferences, such as altruism or a concern for fair outcomes, generate efficient trade? I analyze theoretically a simple bilateral exchange game: each player sequentially takes an action that reduces his own material payoff but increases the other player's. Each player's preferences may depend on both his/her own material payoff and the other player's. I identify two key properties of the second-mover's preferences: indifference curves kinked around "fair" ...[more]