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Relative Injustice Aversion

Author

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  • Luis José Blas Moreno Garrido

    (Dpto. Métodos Cuantitativos y Teoría Económica)

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.

Suggested Citation

  • Luis José Blas Moreno Garrido, 2015. "Relative Injustice Aversion," Working Papers. Serie AD 2015-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2015-08
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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2015-08.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Injustice Aversion; Distribution; Property Rights; Bargaining power;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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