Inequality aversion and externalities

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2012
Volume: 84
Issue: 1
Pages: 111-117

Authors (2)

Gürtler, Marc (not in RePEc) Gürtler, Oliver (Universität zu Köln)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We conduct a general analysis of the effects of inequality aversion on decisions by homogeneous players in static and dynamic games. We distinguish between direct and indirect effects of inequality aversion. Direct effects are present when a player changes his action to affect disutility caused by inequality. Indirect effects occur when the own action is changed to affect other players’ actions. We provide necessary and sufficient conditions for the occurrence of either effect. Moreover, we examine the direction of the effects. Whereas indirect effects induce players to internalize externalities they impose on others, direct effects act in the opposite direction.

Technical Details

RePEc Handle
repec:eee:jeborg:v:84:y:2012:i:1:p:111-117
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25