Social Comparisons in Ultimatum Bargaining
AbstractExperiments are used to examine the effects of social comparisons in ultimatum bargaining. We inform responders about the average offer before they decide whether to accept or reject their specific offer. This significantly increases offers and offer-specific rejection probabilities. For comparison, we consider another change in informational conditions: telling responders the total pie is $30-"ex ante" it was either $15 or $30-affects offers and rejection probabilities roughly as much. Our results are consistent with people's dislike for deviations from the norm of equity but inconsistent with fairness theories, where people dislike income disparity between themselves and their referents. Copyright The editors of the "Scandinavian Journal of Economics", 2004 .
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal The Scandinavian Journal of Economics.
Volume (Year): 106 (2004)
Issue (Month): 3 (October)
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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442
Other versions of this item:
- Iris Bohnet & Richard Zeckhauser, 2004. "Social comparisons in ultimatum bargaining," CREMA Working Paper Series 2004-08, Center for Research in Economics, Management and the Arts (CREMA).
- Bohnet, Iris & Zeckhauser, Richard, 2003. "Social Comparisons in Ultimatum Bargaining," Working Paper Series rwp03-028, Harvard University, John F. Kennedy School of Government.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
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