IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v8y2008i1n16.html
   My bibliography  Save this article

Fairness in Extended Dictator Game Experiments

Author

Listed:
  • Oberholzer-Gee Felix

    (Harvard University)

  • Eichenberger Reiner

    (University of Fribourg)

Abstract

We test the robustness of behavior in dictator games by offering allocators the choice to play an unattractive lottery. With this lottery option, mean transfers from allocators to recipients substantially decline, partly because many allocators now keep the entire endowment for themselves (without playing the lottery). In our standard dictator game, the median transfer amounts to 41% of the dictators' endowment. Once the lottery option is present, the median transfer falls to zero. Introducing an additional unattractive choice thus leads subjects to violate the weak axiom of revealed preference (WARP).

Suggested Citation

  • Oberholzer-Gee Felix & Eichenberger Reiner, 2008. "Fairness in Extended Dictator Game Experiments," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-21, July.
  • Handle: RePEc:bpj:bejeap:v:8:y:2008:i:1:n:16
    DOI: 10.2202/1935-1682.1718
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1935-1682.1718
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.2202/1935-1682.1718?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November.
    3. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
    4. Bruno S. Frey & Iris Bohnet, 1999. "Social Distance and Other-Regarding Behavior in Dictator Games: Comment," American Economic Review, American Economic Association, vol. 89(1), pages 335-339, March.
    5. John A. List, 2007. "On the Interpretation of Giving in Dictator Games," Journal of Political Economy, University of Chicago Press, vol. 115(3), pages 482-493.
    6. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 285-300, October.
    7. James Konow, 2003. "Which Is the Fairest One of All? A Positive Analysis of Justice Theories," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1188-1239, December.
    8. Ruffle, Bradley J., 1998. "More Is Better, But Fair Is Fair: Tipping in Dictator and Ultimatum Games," Games and Economic Behavior, Elsevier, vol. 23(2), pages 247-265, May.
    9. Schotter, Andrew & Weiss, Avi & Zapater, Inigo, 1996. "Fairness and survival in ultimatum and dictatorship games," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 37-56, October.
    10. Nicholas Bardsley, 2005. "Altruism or Artefact? A Note on Dictator Game Giving," Discussion Papers 2005-10, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    11. Bolton, Gary E, 1991. "A Comparative Model of Bargaining: Theory and Evidence," American Economic Review, American Economic Association, vol. 81(5), pages 1096-1136, December.
    12. Sefton, Martin, 1992. "Incentives in simple bargaining games," Journal of Economic Psychology, Elsevier, vol. 13(2), pages 263-276, June.
    13. Huber, Joel & Payne, John W & Puto, Christopher, 1982. "Adding Asymmetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(1), pages 90-98, June.
    14. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    15. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May.
    16. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation," International Economic Association Series, in: L.-A. Gérard-Varet & S.-C. Kolm & J. Mercier Ythier (ed.), The Economics of Reciprocity, Giving and Altruism, chapter 7, pages 153-173, Palgrave Macmillan.
    17. Reiner Eichenberger & Felix Oberholzer-Gee, 1998. "Rational moralists: The role of fairness in democratic economic politics," Public Choice, Springer, vol. 94(1), pages 191-210, January.
    18. James Konow, 2000. "Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions," American Economic Review, American Economic Association, vol. 90(4), pages 1072-1091, September.
    19. Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon L, 1996. "Social Distance and Other-Regarding Behavior in Dictator Games," American Economic Review, American Economic Association, vol. 86(3), pages 653-660, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zizzo, Daniel John, 2013. "Claims and confounds in economic experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 186-195.
    2. Vahid Ashrafimoghari & Jordan W. Suchow, 2022. "A Game-theoretic Model of the Consumer Behavior Under Pay-What-You-Want Pricing Strategy," Papers 2207.08923, arXiv.org.
    3. David Reinstein & Gerhard Riener, 2012. "Decomposing desert and tangibility effects in a charitable giving experiment," Experimental Economics, Springer;Economic Science Association, vol. 15(1), pages 229-240, March.
    4. Thomas Dohmen & Armin Falk, 2011. "Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender," American Economic Review, American Economic Association, vol. 101(2), pages 556-590, April.
    5. Thieme, Lutz & Winkelhake, Olaf, 2018. "Zur Wirkung moralischer Appelle als Nudging? Ergebnisse aus verhaltensökonomischen Experimenten," Working Papers of the European Institute for Socioeconomics 22, European Institute for Socioeconomics (EIS), Saarbrücken.
    6. Philipp Sadowski & David Dillenberger, 2011. "Ashamed to Be Selfish," Levine's Working Paper Archive 661465000000001193, David K. Levine.
    7. Emin Karagözoğlu & Elif Tosun, 2022. "Endogenous Game Choice and Giving Behavior in Distribution Games," Games, MDPI, vol. 13(6), pages 1-32, November.
    8. Christine L. Exley, 2020. "Using Charity Performance Metrics as an Excuse Not to Give," Management Science, INFORMS, vol. 66(2), pages 553-563, February.
    9. Christine L. Exley & Judd B. Kessler, 2017. "Motivated Errors," Harvard Business School Working Papers 18-017, Harvard Business School, revised May 2018.
    10. Antonios Avgeris & Panagiota Sergaki & Achilleas Kontogeorgos & Antonios Tiganis, 2020. "Reciprocity in Student Groups: Experimental Evidence from Greece," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 9(1), pages 44-67, June.
    11. Rafael Di Tella & Ricardo Pérez-Truglia, 2010. "Conveniently Upset: Avoiding Altruism by Distorting Beliefs About Others," NBER Working Papers 16645, National Bureau of Economic Research, Inc.
    12. M. Fong, Christina & Oberholzer-Gee, Felix, 2011. "Truth in giving: Experimental evidence on the welfare effects of informed giving to the poor," Journal of Public Economics, Elsevier, vol. 95(5), pages 436-444.
    13. Valerio Capraro & Roberto Di Paolo & Veronica Pizziol, 2023. "Assessing Large Language Models' ability to predict how humans balance self-interest and the interest of others," Papers 2307.12776, arXiv.org, revised Feb 2024.
    14. Florian Artinger & Filippos Exadaktylos & Hannes Koppel & Lauri Sääksvuori, 2014. "In Others' Shoes: Do Individual Differences in Empathy and Theory of Mind Shape Social Preferences?," PLOS ONE, Public Library of Science, vol. 9(4), pages 1-9, April.
    15. Edward Lazear & Ulrike Malmendier & Roberto Weber, 2006. "Sorting, Prices, and Social Preferences," NBER Working Papers 12041, National Bureau of Economic Research, Inc.
    16. te Velde, Vera L., 2022. "Heterogeneous norms: Social image and social pressure when people disagree," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 319-340.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emin Karagözoğlu & Elif Tosun, 2022. "Endogenous Game Choice and Giving Behavior in Distribution Games," Games, MDPI, vol. 13(6), pages 1-32, November.
    2. Erin L. Krupka & Roberto A. Weber, 2013. "Identifying Social Norms Using Coordination Games: Why Does Dictator Game Sharing Vary?," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 495-524, June.
    3. Burnham, Terence C., 2013. "Toward a neo-Darwinian synthesis of neoclassical and behavioral economics," Journal of Economic Behavior & Organization, Elsevier, vol. 90(S), pages 113-127.
    4. Luigi Mittone & Matteo Ploner, 2006. "Is It Just Legitimacy of Endowments? An Experimental Analysis of Unilateral Giving," CEEL Working Papers 0602, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    5. Bohnet, Iris & Frey, Bruno S., 1999. "The sound of silence in prisoner's dilemma and dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 43-57, January.
    6. Rode, Julian & Le Menestrel, Marc, 2011. "The influence of decision power on distributive fairness," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 246-255, August.
    7. Franzen, Axel & Pointner, Sonja, 2012. "Anonymity in the dictator game revisited," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 74-81.
    8. Murnighan, J. Keith & Wang, Long, 2016. "The social world as an experimental game," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 80-94.
    9. Tausch, Franziska & Potters, Jan & Riedl, Arno, 2013. "Preferences for redistribution and pensions. What can we learn from experiments?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(3), pages 298-325, July.
    10. Croson, Rachel & Konow, James, 2007. "Double Standards: Social Preferences and Moral Biases," MPRA Paper 2729, University Library of Munich, Germany.
    11. Eckel, Catherine & Gintis, Herbert, 2010. "Blaming the messenger: Notes on the current state of experimental economics," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 109-119, January.
    12. Breitmoser, Yves & Vorjohann, Pauline, 2018. "Welfare-Based Altruism," Rationality and Competition Discussion Paper Series 89, CRC TRR 190 Rationality and Competition.
    13. Cherry, Todd L. & Kroll, Stephan & Shogren, Jason F., 2005. "The impact of endowment heterogeneity and origin on public good contributions: evidence from the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 357-365, July.
    14. Croson, Rachel & Konow, James, 2009. "Social preferences and moral biases," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 201-212, March.
    15. Sunaina Shrivastava & Gaurav Jain & Dhananjay Nayakankuppam & Gary J. Gaeth & Irwin P Levin, 2017. "Numerosity and allocation behavior: Insights using the dictator game," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 12(6), pages 527-536, November.
    16. Breitmoser, Yves & Vorjohann, Pauline, 2022. "Fairness-based Altruism," Center for Mathematical Economics Working Papers 666, Center for Mathematical Economics, Bielefeld University.
    17. Oxoby, Robert J. & Spraggon, John, 2008. "Mine and yours: Property rights in dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 703-713, March.
    18. Norman Frohlich & Joe Oppenheimer, 2006. "Skating on Thin Ice," Journal of Theoretical Politics, , vol. 18(3), pages 235-266, July.
    19. repec:cup:judgdm:v:12:y:2017:i:6:p:527-536 is not listed on IDEAS
    20. Burks, Stephen V. & Carpenter, Jeffrey P. & Verhoogen, Eric, 2003. "Playing both roles in the trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 195-216, June.
    21. Emin Karagözoglu & Arno Riedl, 2010. "Information, Uncertainty, and Subjective Entitlements in Bargaining," CESifo Working Paper Series 3133, CESifo.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:8:y:2008:i:1:n:16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.