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Analyzing Ultimatum Bargaining: A Bayesian Approach to the Comparison of Two Potency Curves under Shape Constraints

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  • Fong, Duncan K H
  • Bolton, Gary E

Abstract

An experiment designed to test whether experimenter observation influences play of the ultimatum game led to a comparison of proportions of perfect equilibria obtained under different conditions. The authors' analysis features a Bayesian approach to this comparison. Their method extends recent work in the nonparametric Bayesian analysis of bioassay problems when the prior constrains the form of the potency curve. Sampling-based approaches to calculating posterior features of interest are used and discussed. The authors conclude that experimenter observation has a small influence but not enough to account for most of the deviation from perfect-equilibrium play.

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Bibliographic Info

Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 15 (1997)
Issue (Month): 3 (July)
Pages: 335-44

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Handle: RePEc:bes:jnlbes:v:15:y:1997:i:3:p:335-44

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Cited by:
  1. Gary Bolton & Axel Ockenfels, 2005. "A stress test of fairness measures in models of social utility," Economic Theory, Springer, vol. 25(4), pages 957-982, 06.
  2. Bolton, Gary E., 2002. "Game theory's role in role-playing," International Journal of Forecasting, Elsevier, vol. 18(3), pages 353-358.
  3. Gary E. Bolton & Jordi Brandts & Elena Katok & Axel Ockenfels & Rami Zwick, . "Testing Theories of Other-regarding Behavior," Papers on Strategic Interaction 2002-43, Max Planck Institute of Economics, Strategic Interaction Group.
  4. DeSarbo, Wayne S. & Kim, Youngchan & Wedel, Michel & Fong, Duncan K. H., 1998. "A Bayesian approach to the spatial representation of market structure from consumer choice data," European Journal of Operational Research, Elsevier, vol. 111(2), pages 285-305, December.
  5. Gary Bolton & Duncan Fong & Paul Mosquin, 2003. "Bayes Factors with an Application to Experimental Economics," Experimental Economics, Springer, vol. 6(3), pages 311-325, November.

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