Author: Gerald Dürr

1999: Fehr & Schmidt introduced A Theory of Fairness, Competition, and Cooperation

When this work was published most economic models routinely assumed that material self-interest is the sole motivation of all people engaging in economic activities. In such models fairness considerations or preferences for cooperation don’t play a role when researchers analyze the outcome of economic interactions. However, there is evidence suggesting that some people care about fairness or have a preference for cooperation.