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- W2103409124 abstract "► Market exposure can favor the evolution of inequity-averse preferences. ► The effect stems from an opportunity to obtain information rents. ► We offer a new explanation to more sociality observed in market-integrated societies. ► We predict a positive relationship between market concentration and sociality. This paper shows how market exposure can support the evolution of non-individualistic preferences. In a group, one agent is randomly selected to divide an exogenous endowment. Endowment shares are used for either consumption or market exchange with external merchants. As a more equal endowment distribution attenuates the scope of merchants’ price discrimination, we argue that inequity-averse preferences may lead to a higher utility of consumption and so survive evolutionary pressures. This effect arises from an opportunity to create and extract information rents. We offer a new explanation to the empirical finding that a society's exposure to markets has a positive effect on its members’ sociality." @default.
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- W2103409124 date "2012-09-01" @default.
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- W2103409124 title "How exposure to markets can favor inequity-averse preferences" @default.
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- W2103409124 doi "https://doi.org/10.1016/j.jebo.2012.07.008" @default.
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