Relative Injustice Aversion
- 1 Universitat d'Alacant, Departamento de Métodos Cuantitativos y Teoría Económica
Year of publication: 2015
Issue: 8
Pages: 1-22
Type: Working paper
Abstract
I propose a new utility function based on the relative aversion to injustice to explain why, in bargaining games, neither classical equilibria nor inequality aversion equilibria hold when money is not windfall, but it is the result of the effort. This utility function generalizes the concept of inequality aversion when agents have beliefs about what they deserve, and it is able to explain rejections in non zero-sum games. I analyze the agents' behavior and their bargaining power in the dictator game, ultimatum game and (0,1)-ultimatum game and results are compared within those games.