Obstacles to permit trade
This project was earlier named "The role of decency in emissions permit trade", but as the work has evolved, we have changed focus a bit and renamed the project.
While the initial focus was to study if permit trade is less acceptable when the distribution of initial permits is perceived as unfair, we know would like to make this more general by studying willingness to accept trade for different background conditions. We know from several ultimatum games that people may reject efficient outcomes that are considered unfair, i.e. with very unequal outcomes. But would the background conditions, e.g., the bargaining power, affect this result? More explicitly, will very different background conditions make people accept trade institutions considered unfair? Examples of trade with possibly unfair background conditions could be kidney trade between poor and rich; prostitution; surrogate mothers; and permit trading.