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Testing subgame perfection apart from fairness in ultimatum games

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  • James Andreoni

    ()

  • Emily Blanchard

Abstract

We present an experiment designed to separate the two commonplace explanations for behavior in ultimatum games—subjects’ concern for fairness versus the failure of subgame perfection as an equilibrium refinement. We employ a tournament structure of the bargaining interaction to eliminate the potential for fairness to influence behavior. Comparing the results of the tournament game with two control treatments affords us a clean test of subgame perfection as well as a measure fairness-induced play. We find after 10 iterations of play that about half of all non-subgame-perfect demands are due to fairness, and the rest to imperfect learning. However, as suggested by models of learning, we also confirm that the ultimatum game presents an especially difficult environment for learning subgame perfection. Copyright Economic Science Association 2006

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Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 9 (2006)
Issue (Month): 4 (December)
Pages: 307-321

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Handle: RePEc:kap:expeco:v:9:y:2006:i:4:p:307-321

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Web page: http://www.springerlink.com/link.asp?id=102888

Related research

Keywords: Utimatum game; Subgame perfection; Fairness; Learning;

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Citations

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Cited by:
  1. Vjollca Sadiraj & Juan Sun, 2012. "Efficiency in Bargaining Games with Alternating Offers," Economics Bulletin, AccessEcon, vol. 32(3), pages 2366-2374.
  2. McCain, Roger A., 2008. "Cooperative games and cooperative organizations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2155-2167, December.
  3. McCain, Roger A., 2009. "Commitment and weakness of will in game theory and neoclassical economics," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 549-556, August.
  4. Michał Krawczyk & Fabrice Le Lec, 2012. "Testing game theory without the social preference confound," Working Papers 2012-06, Faculty of Economic Sciences, University of Warsaw.
  5. Normann, Hans-Theo & Requate, Till & Waichman, Israel, 2013. "Do short-term laboratory experiments provide valid descriptions of long-term economic interactions? A study of Cournot markets," DICE Discussion Papers 100, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  6. Gautam Bose & Lorraine Ivancic & Evgenia Dechter, 2014. "Conforming to Group Norms: An Experimental Study," Discussion Papers 2014-21, School of Economics, The University of New South Wales.
  7. 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.
  8. David Cooper & E. Dutcher, 2011. "The dynamics of responder behavior in ultimatum games: a meta-study," Experimental Economics, Springer, vol. 14(4), pages 519-546, November.
  9. Maruyama, Shiko, 2014. "Estimation of finite sequential games," Journal of Econometrics, Elsevier, vol. 178(2), pages 716-726.

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