Participation costs for responders can reduce rejection rates in ultimatum bargaining
AbstractThe 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 InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 103 (2009)
Issue (Month): 1 (April)
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Web page: http://www.elsevier.com/locate/ecolet
Cognitive dissonance Loss aversion Participation costs Sunk costs Ultimatum game;
Other versions of this item:
- Philipp C. Wichardt & Daniel Schunk & Patrick W. Schmitz, 2008. "Participation costs for responders can reduce rejection rates in ultimatum bargaining," IEW - Working Papers 398, Institute for Empirical Research in Economics - University of Zurich.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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