Vidal's library
Title: Incorporating Fairness into Game Theory and Economics
Author: Matthew Rabin
Journal: The American Economic Review
Volume: 83
Number: 5
Pages: 1281--1302
Year: 1993
Abstract: People like to help those who are helping them, and to hurt those who are hurting them. Outcomes reflecting such motivations are called fairness equilibria. Outcomes are mutual-max when each person maximizes the other's material payoffs, and mutual-min when each person minimizes the other's payoffs. It is shown that every mutual-max or mutual-min Nash equilibrium is a fairness equilibrium. If payoffs are small, fairness equilibria are roughly the set of mutual-max and mutual-min outcomes; if payoffs are large, fairness equilibria are roughly the set of Nash equilibria. Several economic examples are consid- ered, and possible welfare implications of fairness are explored.

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@Article{rabin93a,
  author =	 {Matthew Rabin},
  title =	 {Incorporating Fairness into Game Theory and
                  Economics},
  journal =	 {The American Economic Review},
  year =	 1993,
  volume =	 83,
  number =	 5,
  pages =	 {1281--1302},
  abstract =	 {People like to help those who are helping them, and
                  to hurt those who are hurting them. Outcomes
                  reflecting such motivations are called fairness
                  equilibria. Outcomes are mutual-max when each
                  person maximizes the other's material payoffs, and
                  mutual-min when each person minimizes the other's
                  payoffs. It is shown that every mutual-max or
                  mutual-min Nash equilibrium is a fairness
                  equilibrium. If payoffs are small, fairness
                  equilibria are roughly the set of mutual-max and
                  mutual-min outcomes; if payoffs are large, fairness
                  equilibria are roughly the set of Nash
                  equilibria. Several economic examples are consid-
                  ered, and possible welfare implications of fairness
                  are explored.},
  url = 	 {http://jmvidal.cse.sc.edu/library/rabin93a.pdf},
  cluster = 	 {1289972598436133877}
}
Last modified: Wed Mar 9 10:13:49 EST 2011