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Being of two minds: Ultimatum offers under cognitive constraints

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  • Cappelletti, Dominique
  • Güth, Werner
  • Ploner, Matteo

Abstract

We experimentally investigate how proposers in the Ultimatum Game behave when their cognitive resources are constrained by time pressure and cognitive load. In a dual-system perspective, when proposers are cognitively constrained and thus their deliberative capacity is reduced, their offers are more likely to be influenced by spontaneous affective reactions. We find that under time pressure proposers make higher offers. This increase appears not to be explained by more reliance on an equality heuristic. Analysing the behaviour of the same individual in both roles leads us to favour the strategic over the other-regarding explanation for the observed increase in offers. In contrast, proposers who are under cognitive load do not behave differently from proposers who are not.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 32 (2011)
Issue (Month): 6 ()
Pages: 940-950

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Handle: RePEc:eee:joepsy:v:32:y:2011:i:6:p:940-950

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

Related research

Keywords: Ultimatum Game; Dual-system theories; Time pressure; Cognitive load; Experimental economics;

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References

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Citations

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Cited by:
  1. Tim Friehe & Hannah Schildberg-Hörisch, 2014. "Crime and Self-Control Revisited: Disentangling the Effect of Self-Control on Risk and Social Preferences," CESifo Working Paper Series 4747, CESifo Group Munich.
  2. Alexia Delfino & Luigi Marengo & Matteo Ploner, 2013. "I Did it Your Way. An Experimental Investigation of Peer Effects in Investment Choices," CEEL Working Papers 1305, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
  3. 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.
  4. Duffy, Sean & Smith, John, 2012. "Cognitive load in the multi-player prisoner's dilemma game," MPRA Paper 35906, University Library of Munich, Germany.
  5. Allred, Sarah & Duffy, Sean & Smith, John, 2013. "Cognitive Load and Strategic Sophistication," MPRA Paper 47997, University Library of Munich, Germany.
  6. Hauge, Karen Evelyn & Brekke, Kjell Arne & Johansson, Lars-Olof & Johansson-Stenman, Olof & Svedsäter, Henrik, 2014. "Keeping others in our mind or in our heart? Distribution games under cognitive load," Working Papers in Economics 600, University of Gothenburg, Department of Economics.
  7. Duffy, Sean & Smith, John, 2012. "Cognitive load in the multi-player prisoner's dilemma game: Are there brains in games?," MPRA Paper 38825, University Library of Munich, Germany.
  8. Buckert, Magdalena & Oechssler, Jörg & Schwieren, Christiane, 2014. "Imitation under stress," Working Papers 0556, University of Heidelberg, Department of Economics.
  9. Paolo Crosetto & Marco Mantovani, 2012. "Availability of Information and Representation Effects in the Centipede Game," Jena Economic Research Papers 2012-051, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  10. Alexander W. Cappelen & Ulrik H. Nielsen & Bertil Tungodden & Jean-Robert Tyran & Erik Wengström, 2014. "Fairness is Intuitive," Discussion Papers 14-10, University of Copenhagen. Department of Economics.

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