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Fehr, Ernst and Schmidt, Klaus M. ORCID logoORCID: https://orcid.org/0000-0002-5011-0828 (February 2009): On Inequity Aversion - A Reply to Binmore and Shaked. SFB/TR 15 Discussion Paper No. 256 [PDF, 245kB]

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Abstract

In this paper we reply to Binmore and Shaked’s criticism of the Fehr-Schmidt model of inequity aversion. We put the theory and their arguments into perspective and show that their criticism is not substantiated. Finally, we briefly comment on the main challenges for future research on social preferences.

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