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Ultimatum Bargaining Behavior in Israel, Japan, Slovenia, and the United States: A Social Utility Analysis

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  • Costa-Gomes, Miguel
  • Zauner, Klaus G.

Abstract

We explain the main features of the results of the four-country ultimatum bargaining experiments of Roth, Prasnikar, Okuno-Fujiwara, and Zamir (1991) by a social utility model. The specification of social utility of a player has two parts: a linear combination of the monetary payoffs of the proposer and the responder, and payoff uncertainty. We find that, on average, responders have negative regard for proposers’ earnings in all countries. Proposers have negative regard for responders’ monetary earnings in countries where responders have high negative regard for proposers’ earnings (USA and Slovenia). In countries where responders have low negative regard for proposers’ earnings (Israel and Japan), proposers are expected payoff maximizers.
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  • Costa-Gomes, Miguel & Zauner, Klaus G., 2001. "Ultimatum Bargaining Behavior in Israel, Japan, Slovenia, and the United States: A Social Utility Analysis," Games and Economic Behavior, Elsevier, vol. 34(2), pages 238-269, February.
    • Handle: RePEc:eee:gamebe:v:34:y:2001:i:2:p:238-269
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    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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