Equity versus Efficiency? Evidence from Three-Person Generosity Experiments
AbstractIn two-person generosity games, the proposer’s agreement payoff is exogenously given, whereas that of the responder is endogenously determined by the proposer’s choice of the pie size. In three-person generosity games, equal agreement payoffs for two of the players are either exogenously excluded or imposed. We predict that the latter crowds out - or at least weakens - efficiency seeking. Our treatments rely on a 2x3 factorial design, differing in whether the responder or the third (dummy) player is the residual claimant and whether the proposer’s agreement payoff is larger, equal, or smaller than the other exogenously given agreement payoff.
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Bibliographic InfoArticle provided by MDPI, Open Access Journal in its journal Games.
Volume (Year): 1 (2010)
Issue (Month): 2 (April)
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Web page: http://www.mdpi.com/
generosity game; equity; efficiency; experiment;
Find related papers by JEL classification:
- C - Mathematical and Quantitative Methods
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- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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- 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.
- Werner Güth & Martin G. Kocher, 2013. "More than Thirty Years of Ultimatum Bargaining Experiments: Motives, Variations, and a Survey of the Recent Literature," CESifo Working Paper Series 4380, CESifo Group Munich.
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