TY  - RPRT
        AU  - Gill, David
AU  - Stone, Rebecca
        TI  - Desert and Inequity Aversion in Teams
        PY  - 2014/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8444
        UR  - https://www.iza.org/publications/dp8444
        AB  - Teams are becoming increasingly important in work settings. We develop a framework to study the strategic implications of a meritocratic notion of desert under which team members care about receiving what they feel they deserve. Team members find it painful to receive less than their perceived entitlement, while receiving more may induce pleasure or pain depending on whether their preferences exhibit desert elation or desert guilt.
Our notion of desert generalizes distributional concern models to situations in which effort choices affect the distribution perceived to be fair; in particular, desert nests inequity aversion over money net of effort costs as a special case. When identical teammates share team output equally, desert guilt generates a continuum of symmetric equilibria. Equilibrium effort can lie above or below the level in the absence of desert, so desert guilt generates behavior consistent with both positive and negative reciprocity and may underpin social norms of cooperation.
        KW  - desert
KW  - deservingness
KW  - equity
KW  - inequity aversion
KW  - loss aversion
KW  - reference-dependent preferences
KW  - guilt
KW  - reciprocity
KW  - social norms
KW  - team production
        ER  -