This paper analyzes how incentive provision in team production is affected if agents are inequity averse in the sense of Fehr and Schmidt (1999). By deriving optimal contracts accounting for inequity aversion we find that efficient effort choices can be implemented with simple budget-balancing sharing rules if agents are sufficiently inequity averse. Conditions on inequity aversion become less ...

This paper analyzes the interaction of fairness concerns and social comparisons with asymmetric information and incentives within the context of a firm’s employment decision. It studies optimal, incentive-compatible employment contracts if each worker is inequity averse he suffers from being ‘worse off’ than his colleagues and has private information about his productivity. Inequity aversion is...

Sometimes we punish non-cooperators in our society. Such behavior could be derived from aversive emotion for inequity (inequity aversion) to make non-cooperators cooperative. Thus, punishing behavior derived from inequity is believed to be important for maintaining our society. Meanwhile, our daily experiences suggest that the degree of cooperation by the members of society (cooperation level o...

BACKGROUND One strategic approach available to policy makers to improve the availability of reproductive and child health care supplies and services as well as the sustainability of programs is to expand the role of the private sector in providing these services. However, critics of this approach argue that increased reliance on the private sector will not serve the needs of the poor, and could...

In this paper we study neural responses to inequitable distributions of rewards despite equal performance. We specifically focus on differences between advantageous inequity (AI) and disadvantageous inequity (DI). AI and DI were realized in a hyperscanning functional magnetic resonance imaging (fMRI) experiment with pairs of subjects simultaneously performing a task in adjacent scanners and obs...

It has been suggested that inequity aversion is a mechanism that evolved in humans to maximize the pay-offs from engaging in cooperative tasks and to foster long-term cooperative relationships between unrelated individuals. In support of this, evidence of inequity aversion in nonhuman animals has typically been found in species that, like humans, live in complex social groups and demonstrate co...

This paper proposes a new approach to the measurement of inequality and inequity in the delivery of health care based on contributions from the literature on poverty and deprivation. This approach has some appealing characteristics: (1) inequity is additively decomposable by population subgroups; (2) the approach does not rely on socio-economic ranks; (3) it provides a graphical representation ...

BACKGROUND Health inequality has long attracted keen attention in the research and policy arena. While there may be various motivations to study health inequality, what distinguishes it as a topic is moral concern. Despite the importance of this moral interest, a theoretical and analytical framework for measuring health inequality acknowledging moral concerns remains to be established. STUDY ...

BACKGROUND Although health strategies and policies have addressed equitable distribution of health care in Mongolia, few studies have been conducted on this topic. Rapid socio-economic changes have recently occurred; however, there is no evidence as to how horizontal inequity has changed. The aim of this paper is to evaluate income related-inequalities in health care utilizations and their chan...

Economic decision-making depends on our social environment. Humans tend to respond differently to inequity in close relationships, yet we know little about the potential for such variation in other species. We examine responses to inequity in several groups of chimpanzees (Pan troglodytes) in a paradigm similar to that used previously in capuchin monkeys (Cebus apella). We demonstrate that, lik...