In this lecture, we will study the concept of fairness and how it works in economic transactions.
Note that reciprocity depends on fairness. We will treat well somebody who is fair, and punish what seems unfair. But WHAT is fair and WHAT is unfair. As we saw in Bargaining, there can be difference of opinion about this -- more than one focal point.
The object here is to explore concept of fairness more deeply.
This is done in Chapters 10 and 11 of QUASI RATIONAL ECONOMICS by Richard H. THALER. Can be downloaded from the link.