Reciprocity, Inequity Aversion, and Oligopolistic Competition
نویسندگان
چکیده
منابع مشابه
MPRA Munich Personal RePEc Archive Reciprocity , inequity - aversion , and oligopolistic competition
This paper extends the Cournot and Bertrand models of strategic interaction between firms by assuming that managers are not only profit maximizers, but also have preferences for reciprocity or are averse to inequity. A reciprocal manager responds to unkind behavior of rivals with unkind actions, while at the same time, it responds to kind behavior of rivals with kind actions. An inequity averse...
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This article reports the results of a simple bargaining experiment on the ultimatumrevenge game. The game enables to differentiate between fairness that is stimulated by intentional based motives, distributional motives, and fairness considerations that mix both motives. The laboratory experiments indicate considerable heterogeneity of motives. A majority of subjects seem to combine both motive...
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Inequity aversion is a special form of other regarding preferences and captures many features of reciprocal behavior, an apparently robust pattern in human nature. Using this concept we analyze the Moral Hazard problem and derive several results which differ from conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal cont...
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We provide the first systematic study of the robustness of parameter estimates for the Fehr-Schmidt (1999) model of inequity aversion with respect to (i) the occurrence of efficiency concerns; (ii) the scale of payoffs; and (iii) the game used (i.e., cross-game consistency). Moreover, we provide evidence of a bias in the estimates that occurs if one does not correct for strategic considerations...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2006
ISSN: 1556-5068
DOI: 10.2139/ssrn.999569