Data on Economic Behavior and Organization Described by Researchers at CESifo
2012 APR 20 - (VerticalNews.com) -- According to the authors of a study from Munich, Germany, "Several authors have made attempts to improve the explanatory power of models of inequality aversion, in particular the one by Fehr and Schmidt (1999), by adding concerns for total surplus or efficiency."
"In this note, I point out that these attempts are misguided because they are equivalent to a much simpler change, not requiring an additional parameter, unless we simultaneously consider games with different numbers of players," wrote D. Engelmann and colleagues, CESifo.
The researchers concluded: "In the latter case, however, such an approach yields implausible predictions."
Engelmann and colleagues published their study in the Journal of Economic Behavior & Organization (How not to extend models of inequality aversion. Journal of Economic Behavior & Organization, 2012;81(2):599-605).
For more information, contact D. Engelmann, CESifo, D-81679 Munich, Germany.
Publisher contact information for the Journal of Economic Behavior & Organization is: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands.
Keywords: City:Munich, Country:Germany, Region:Europe, Economic Behavior and Organization
This article was prepared by VerticalNews Economics editors from staff and other reports. Copyright 2012, VerticalNews Economics via VerticalNews.com.