A growing literature in economics has studied how fairness considerations shape human behavior. This review analyses the key theoretical and empirical contributions spanning the last four decades, along with influential related work in normative economics. It argues that the fairness motive is essential for understanding human behavior in a wide range of settings, such as markets, bargaining, and redistributive situations. It moves on to a discussion of the large heterogeneity in what people view as fair and the importance people attach to fairness, displaying how a concern for fairness develops in childhood and manifests itself in the brain. This research review will be a valuable tool for those interested in the fascinating field of the economics of fairness.

The Annual World Bank Conference on Development Economics (ABCDE) brings together the world's finest development thinkers to present their perspectives and ideas. In recent years, a parallel, second conference has been held in Europe with the same goal of expanding the flow of ideas between thinkers, practitioners, and policymakers in the field of international development. ABCDE Europe 2003 presents selected papers from the fourth annual ABCDE Europe meetings, held June 24-26, 2002, in Oslo, Norway. Hosted by the World Bank and the Chr. Michelsen Institute, more than 350 eminent scholars and practitioners from 50 countries met to deliberate on the theme 'Towards Pro-Poor Policies'. The papers from sessions on aid, institutions, and globalization provide both a general overview of links between poverty, inequality, and growth, and address specific topics such as the Heavily Indebted Poor Countries Initiative for debt reduction. All consider the role of policies and institutions in development and poverty reduction. IN THIS VOLUME: An overview by Bertil Tungodden, Ivar Kolstad, and Nicholas Stern; papers on aid by Nicholas Stern, David Roland-Holst and Finn Tarp, Stephan Klasen, Lisa Chauvet and Patrick Guillaumont, and Jean-Pierre Cling, Mireille Razafindrakoto, and Francois Roubaud; papers on institutions by Mariano Tommasi, Mushtaq Khan, David Dunham, Stanley Engerman and Kenneth Sokoloff, Karla Hoff and Joseph Stiglitz; and papers on globalization by Jomo Sundaram, John Dunning, Antonio Spilimbergo, Juan Luis Londono, and Miguel Szekely, Andres Solimano, and Oded Stark."