Egoism

Simple, yet Famous Models

Other–Regarding Utility functions used to explain experimental data

Fehr–Schmidt (Bolton–Ockenfels) introduce fairness and envy:

Ui=mi−Iα−i 1

∑

kmax{(mk−mi),^0 }−

βi

I− 1

∑

kmax{(mi−mk),^0 }

Charness–Rabin:mi+Iβ−i 1

[

δimin{m 1 ,...,mI}+ (1−δi)

∑I

j=1mj

]

Edgeworth already has looked atmi+mj

Shaked: such ad hoc models are not science (and Poincar ́e would

agree)