Economics of Fairness

The Economics of Fairness explores how perceptions of fairness influence economic decisions and behaviors. It examines why people value fairness in outcomes—such as equitable pay or sharing resources—and how these perceptions affect motivation, cooperation, and market interactions. When individuals feel treated fairly, they are more likely to participate positively and contribute to economic productivity; if they feel treatments are unfair, it can lead to conflict or disengagement. Ultimately, understanding fairness helps explain behaviors beyond profit motives, emphasizing how social preferences shape economic activity and policy.