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The Impact of Exchange Context on the Activation of Equity in Ultimatum Games

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Author Info
Elizabeth Hoffman
Kevin McCabe
Vernon Smith

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Abstract

In this paper we report the results of additional exchange ultimatum game experiments conducted at the same time as the exchange ultimatum game experiments reported in Hoffman et al. (Games and Economic Behavior, 7(3), pp. 346–380, 1994). In these additional experiments, we use instructions to change an impersonal exchange situation to a personal exchange situation. To do this, we prompt sellers to consider what choices their buyers will make. Game theory would predict that thinking about the situation would lead sellers to make smaller offers to buyers. In contrast, we find a significant increase in seller offers to buyers. This result suggests that encouraging sellers to thinking about buyer choices focuses their attention on the strategic interaction with humans who think they way they do in personal exchange situations, and who may punish them for unacceptable behavior, and not on the logic of the game theoretic structure of the problem. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1009925123187
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Publisher Info
Article provided by Springer in its journal Experimental Economics.

Volume (Year): 3 (2000)
Issue (Month): 1 (June)
Pages: 5-9
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Handle: RePEc:kap:expeco:v:3:y:2000:i:1:p:5-9

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Keywords: ultimatum games; equity theory; experimental methods;

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  1. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November. [Downloadable!] (restricted)
  2. North, Douglass C, 1991. "Institutions," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 97-112, Winter. [Downloadable!] (restricted)
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  1. Klaus Abbink & Heike Hennig-Schmidt, 2006. "Neutral versus loaded instructions in a bribery experiment," Experimental Economics, Springer, vol. 9(2), pages 103-121, June. [Downloadable!] (restricted)
  2. Massimo Finocchiaro Castro, 2005. "Cultural Goods and Laboratory Experiments," Royal Holloway, University of London: Discussion Papers in Economics 05/06, Department of Economics, Royal Holloway University of London, revised May 2005. [Downloadable!]
  3. Colin Camerer & Teck-Hua Ho & Juin Kuan Chong, 2003. "A cognitive hierarchy theory of one-shot games: Some preliminary results," Levine's Bibliography 506439000000000495, UCLA Department of Economics. [Downloadable!]
  4. Grimalda, Gianluca & Kar, Anirban & Proto, Eugenio, 2008. "The Impact of (In)Equality of Opportunities on Wealth Distribution : Evidence from Ultimatum Games," The Warwick Economics Research Paper Series (TWERPS) 843, University of Warwick, Department of Economics. [Downloadable!]
  5. Klaus Abbink & Heike Hennig-Schmidt, 2002. "Neutral versus Loaded Instructions in a Bribery Experiment," Bonn Econ Discussion Papers bgse23_2002, University of Bonn, Germany. [Downloadable!]
  6. Massimo Finocchiaro Castro, 2004. "Cultural Education and the Voluntary Provision of Cultural Goods: An Experimental Study," Experimental 0404003, EconWPA, revised 27 Oct 2004. [Downloadable!]
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