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Fairness in Stackelberg Games

In: Advances in Understanding Strategic Behaviour

Author

Listed:
  • Steffen Huck
  • Manfred Königstein
  • Wieland Müller

Abstract

In experiments, it is often observed that subjects do not play according to the subgame perfect equilibrium (SPE). There is overwhelming evidence for this claim coming from sequential bargaining games. In its simplest form, the ultimatum game, introduced by Güth et al. (1982), the Proposer is predicted to claim (almost) the entire pie for him/herself while the Responder should accept all positive offers. Contrary to this prediction, one usually observes that the modal offer made by Proposers is a 50–50 split, and that Responders reject substantial positive offers.

Suggested Citation

  • Steffen Huck & Manfred Königstein & Wieland Müller, 2004. "Fairness in Stackelberg Games," Palgrave Macmillan Books, in: Steffen Huck (ed.), Advances in Understanding Strategic Behaviour, chapter 15, pages 314-323, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-52337-1_15
    DOI: 10.1057/9780230523371_15
    as

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