Behavioral Equity

Yuval Feldman and Henry E. Smith

Journal of Institutional and Theoretical Economics (JITE), 2014, vol. 170, issue 1, 137-159

Abstract: The paper uses the findings of psychology, behavioral economics, and behavioral ethics to revisit three main related assumptions of the rational-choice approach to equity, by developing three main points: first, not only bad people try to circumvent the law; second, behavior depends on the relationship between specificity, trust, and the type of motivation triggered; and, third, moral priming has different effects on good and on bad people. Based on these three modifications of rational-choice assumptions about the law-versus-equity distinction, we offer a dynamic acoustic separation model that attempts to examine the effect of law versus equity on both good and bad people.

JEL-codes: D23 D80 K00 K11 K42 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1628/093245613X13871984730889

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