Header

UZH-Logo

Maintenance Infos

How exposure to markets can favor inequity-averse preferences


Zubrickas, Robertas (2011). How exposure to markets can favor inequity-averse preferences. In: Conference on Rationality and Irrationality: Game-Theoretic and Other Perspectives, Stockholm, 3 June 2011 - 4 June 2011.

Abstract

This paper shows how non-individualistic preferences can be individual fitness maximizing in market-integrated societies. In the model, individuals share an endowment, which is used for consumption and/or purchase of goods on the external market. We show that inequity aversion about endowment distribution can be an optimal response to merchants' price discrimination. Then, assuming that increased consumption means increased individual fitness, we argue that evolutionary selection can favor inequity-averse preferences. We also argue that our model can explain the empirical finding of Henrich et al. (2004) about the positive e¤ect of a society's exposure to markets on its members' sociality.

Abstract

This paper shows how non-individualistic preferences can be individual fitness maximizing in market-integrated societies. In the model, individuals share an endowment, which is used for consumption and/or purchase of goods on the external market. We show that inequity aversion about endowment distribution can be an optimal response to merchants' price discrimination. Then, assuming that increased consumption means increased individual fitness, we argue that evolutionary selection can favor inequity-averse preferences. We also argue that our model can explain the empirical finding of Henrich et al. (2004) about the positive e¤ect of a society's exposure to markets on its members' sociality.

Statistics

Citations

2 citations in Web of Science®
2 citations in Scopus®
Google Scholar™

Altmetrics

Downloads

87 downloads since deposited on 21 Feb 2012
15 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Conference or Workshop Item (Paper), not refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Event End Date:4 June 2011
Deposited On:21 Feb 2012 14:26
Last Modified:12 Aug 2017 23:52
Publisher DOI:https://doi.org/10.1016/j.jebo.2012.07.008
Official URL:http://www.hhs.se/Education/PhD/PhDE/Documents/How%20Exposure.pdf
Related URLs:http://www.zora.uzh.ch/51733/
http://www.hhs.se/DE/Pages/RationalityandirrationalitySto.aspx
Other Identification Number:merlin-id:6125

Download

Download PDF  'How exposure to markets can favor inequity-averse preferences'.
Preview
Filetype: PDF
Size: 196kB
View at publisher