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Fairness dilemmas arise when groups are faced with making decisions about how to share their resources, rewards, or payoffs. Since resources are limited, groups need to decide on fair ways of apportioning them out to their members. These fairness judgments are determined by procedural and distributive forms of social justice.
In the theory of fair division, the price of fairness (POF) is the ratio of the largest economic welfare attainable by a division to the economic welfare attained by a fair division. The POF is a quantitative measure of the loss of welfare that society has to take in order to guarantee fairness.
The field of economics originally assumed that humans were rational economic actors, and as it became apparent that this was not the case, the field began to change. The research of social preferences in economics started with lab experiments in 1980, where experimental economists found subjects' behavior deviated systematically from self ...
In his book A Theory of Justice, John Rawls outlines his famous theory about justice as fairness. The theory consists of three core components: [4] the equality of people in rights and liberties; the equality of opportunities for all; and; an arrangement of economic inequalities focused on benefit maximisation for those who are least advantaged.
The just price is a theory of ethics in economics that attempts to set standards of fairness in transactions. With intellectual roots in ancient Greek philosophy , it was advanced by Thomas Aquinas based on an argument against usury , which in his time referred to the making of any rate of interest on loans .
Equity, or economic equality, is the construct, concept or idea of fairness in economics and justice in the distribution of wealth, resources, and taxation within a society. . Equity is closely tied to taxation policies, welfare economics, and the discussions of public finance, influencing how resources are allocated among different segments of the populati
Inequity aversion (IA) is the preference for fairness and resistance to incidental inequalities. [1] The social sciences that study inequity aversion include sociology, economics, psychology, anthropology, and ethology. Researchers on inequity aversion aim to explain behaviors that are not purely driven by self-interests but fairness ...
Extensive form representation of a two proposal ultimatum game. Player 1 can offer a fair (F) or unfair (U) proposal; player 2 can accept (A) or reject (R). The ultimatum game is a game that has become a popular instrument of economic experiments.