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Participation costs for responders can reduce rejection rates in ultimatum bargaining

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  • Wichardt, Philipp C.
  • Schunk, Daniel
  • Schmitz, Patrick W.

Abstract

The data reported in this paper show that in an ultimatum mini-game rejection rates of low offers are significantly reduced if participation for responders is voluntary but costly. A possible explanation based on cognitive dissonance and loss aversion is offered.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 103 (2009)
Issue (Month): 1 (April)
Pages: 33-35

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Handle: RePEc:eee:ecolet:v:103:y:2009:i:1:p:33-35

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Cognitive dissonance Loss aversion Participation costs Sunk costs Ultimatum game;

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References

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Citations

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Cited by:
  1. Elmar Lukas & Andreas Welling, 2011. "The Impact of Managerial Flexibility on Negotiation Strategy and Bargaining Power," FEMM Working Papers 110008, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
  2. Werner Güth & Martin G. Kocher, 2013. "More than thirty years of ultimatum bargaining experiments: Motives, variations, and a survey of the recent literature," Jena Economic Research Papers 2013-035, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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