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Expectations and Fairness in a Simple Bargaining Experiment

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Author Info
Harrison, Glenn W
McCabe, Kevin A

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Abstract

We evaluate two competing hypotheses that try to account for robust violations of the predictions of game theory in Ultimatum bargaining experiments. One popular hypothesis is that the subjects are motivated by considerations of fairness that are not modeled by traditional theory. The alternative hypothesis is that the subjects do not have common knowledge of the rationality, beliefs and motives of other players. Each hypothesis can explain existing data. We design several experiments to discriminate between the two hypotheses. The results provide strong support for the alternative hypothesis.

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Publisher Info
Article provided by Springer in its journal International Journal of Game Theory.

Volume (Year): 25 (1996)
Issue (Month): 3 ()
Pages: 303-27
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Handle: RePEc:spr:jogath:v:25:y:1996:i:3:p:303-27

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  1. Gehrig, Thomas & Güth, Werner & Levínsky, René, 2006. "(In)Transparency of Information Acquisition: A Bargaining Experiment," CEPR Discussion Papers 5817, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Anabela Botelho & Glenn W. Harrison & Marc A. Hirsch & Elisabet E. Rutstrom, 2001. "Bargaining behavior, demographics and nationality: a reconsideration of the experimental evidence," Working Papers 16, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho. [Downloadable!]
  3. David van Bragt & Han La Poutré, 2001. "Evolving Automata Play the Alternating-Offers Game," CeNDEF Workshop Papers, January 2001 2B.3, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
  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. Poulsen, Anders U. & Tan, Jonathan H.W., 2004. "Can Information Backfire? - Experimental Evidence from the Ultimatum Game," Working Papers 04-16, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
  6. Thomas Gehrig & Werner Güth & René Levínský, 2003. "Ultimatum Offers and the Role of Transparency: An Experimental Study of Information Acquisition," Papers on Strategic Interaction 2003-16, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  7. Bohnet, Iris & Zeckhauser, Richard, 2003. "Social Comparisons in Ultimatum Bargaining," Working Paper Series rwp03-028, Harvard University, John F. Kennedy School of Government. [Downloadable!]
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  8. J. Keith Murnighan & M.S. Saxon, 1998. "Ultimatum Bargaining by Children and Adults," Artefactual Field Experiments 0071, The Field Experiments Website. [Downloadable!]
  9. S. Huck & J. Oechssler, . "The Indirect Evolutionary Approach To Explaining Fair Allocations," Sonderforschungsbereich 373 1996-13, Humboldt Universitaet Berlin.
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  10. Wieland Müller & Yossi Spiegel & Werner Güth, . "Noisy leadership: An experimental approach," Papers on Strategic Interaction 2002-10, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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  11. Julio J. Rotemberg, 2006. "Minimally acceptable altruism and the ultimatum game," Working Papers 06-12, Federal Reserve Bank of Boston. [Downloadable!]
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  12. Anders Poulsen & Jonathan Tan, 2007. "Information acquisition in the ultimatum game: An experimental study," Experimental Economics, Springer, vol. 10(4), pages 391-409, December. [Downloadable!] (restricted)
  13. Carraro, Carlo & Marchiori, Carmen & Sgobbi, Alessandra, 2005. "Advances in negotiation theory : bargaining, coalitions, and fairness," Policy Research Working Paper Series 3642, The World Bank. [Downloadable!]
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  14. Enrico Gerding & David van Bragt & Han La Poutré, 2003. "Multi-Issue Negotiation Processes by Evolutionary Simulation, Validation and Social Extensions," Computational Economics, Springer, vol. 22(1), pages 39-63, August. [Downloadable!] (restricted)
  15. Stephen L. Cheung, 2008. "Using Mobile Phone Messaging as a Response Medium in Classroom Experiments," Journal of Economic Education, Helen Dwight Reid Foundation, vol. 39(1), pages 51-67. [Downloadable!]
  16. John Duffy & Nick Feltovich, 1997. "Does Observation of Others Affect Learning in Strategic Environments? An Experimental Study," Levine's Working Paper Archive 592, David K. Levine. [Downloadable!]
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  17. David Cooper & Nick Feltovich & Alvin Roth & Rami Zwick, 2003. "Relative versus Absolute Speed of Adjustment in Strategic Environments: Responder Behavior in Ultimatum Games," Experimental Economics, Springer, vol. 6(2), pages 181-207, October. [Downloadable!] (restricted)
  18. Kurtis Swope & John Cadigan & Pamela Schmitt & Robert S. Shupp, 2005. "Social Position and Distributive Justice: Experimental Evidence," Working Papers 200505, Ball State University, Department of Economics, revised Jun 2005. [Downloadable!]
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  19. Johnson, Eric J. & Camerer, Colin & Sen, Sankar & Rymon, Talia, 1998. "Detecting Failures of Backward Induction: Monitoring Information Search in Sequential Bargaining," Working Papers 1040, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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