Incorporating Fairness into Game Theory and Economics Export

@article{citeulike:482877, abstract = {People like to help those who are helping them, and to hurt those who are hurting them. Outcomes reflecting such motivations are called fairness equilibria. Outcomes are mutual-max when each person maximizes the other's material payoffs, and mutual-min when each person minimizes the other's payoffs. It is shown that every mutual-max or mutual-min Nash equilibrium is a fairness equilibrium. If payoffs are small, fairness equilibria are roughly the set of mutual-max and mutual-min outcomes; if payoffs are large, fairness equilibria are roughly the set of Nash equilibria. Several economic examples are considered, and possible welfare implications of fairness are explored.}, author = {Rabin, Matthew}, citeulike-article-id = {482877}, citeulike-linkout-0 = {http://www.jstor.org/stable/2117561}, journal = {The American Economic Review}, keywords = {behavioral\_economics, persuasive2007}, number = {5}, pages = {1281--1302}, posted-at = {2007-03-16 21:33:22}, priority = {2}, title = {Incorporating Fairness into Game Theory and Economics}, url = {http://www.jstor.org/stable/2117561}, volume = {83}, year = {1993} }

TY - JOUR ID - citeulike:482877 L3 - citeulike-article-id:482877 N2 - People like to help those who are helping them, and to hurt those who are hurting them. Outcomes reflecting such motivations are called fairness equilibria. Outcomes are mutual-max when each person maximizes the other's material payoffs, and mutual-min when each person minimizes the other's payoffs. It is shown that every mutual-max or mutual-min Nash equilibrium is a fairness equilibrium. If payoffs are small, fairness equilibria are roughly the set of mutual-max and mutual-min outcomes; if payoffs are large, fairness equilibria are roughly the set of Nash equilibria. Several economic examples are considered, and possible welfare implications of fairness are explored. IS - 5 JF - The American Economic Review EP - 1302 TI - Incorporating Fairness into Game Theory and Economics VL - 83 SP - 1281 KW - behavioral_economics KW - persuasive2007 AU - Rabin, Matthew PY - 1993/// UR - http://www.jstor.org/stable/2117561 ER -