Fairness, as studied by economist Ernst Fehr, is a concept in behavioral economics that explores how notions of fairness and equity influence economic decision-making. Fehr’s research emphasizes that individuals often exhibit a strong sense of fairness, and their economic choices are not solely driven by self-interest. The idea of fairness can influence how people allocate resources, cooperate in economic exchanges, and punish perceived unfairness.
Fehr’s work has revealed that considerations of fairness play a crucial role in shaping economic transactions, challenging traditional economic models that assume purely rational and self-interested behavior. Understanding fairness is essential for gaining insights into real-world economic interactions and designing policies that align with people’s inherent sense of fairness.