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Bargaining and Trust: The Effects of 36hr Total Sleep Deprivation on Socially Interactive Decisions

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  • Clare Anderson
  • David L. Dickinson

Abstract

Though it is well known that sleep loss results in poor judgment and decisions, little is known about the influence of social context in these processes. Sixteen healthy young adults underwent three games involving bargaining (‘Ultimatum’ and ‘Dictator’) and trust, following total sleep deprivation (TSD) and during rested wakefulness (RW), in a repeated measures, counterbalanced design. To control for repeatability, a second group (n=16) was tested twice under RW conditions. Paired anonymously with another individual, participants made their simple social interaction decisions facing real monetary incentives. For bargaining, following TSD participants were more likely to reject unequal-split offers made by their partner, despite the rejection resulting in a zero monetary payoff for both participants. For the trust game, participants were less likely to place full trust in their anonymous partner, again affecting final payoff. Overall, we provide novel evidence that following TSD, the conflict between personal financial gain and payoff equality is focused on unfavourable inequality. This results in the rejection of unfair offers, at personal monetary cost, and the lack of full trust, which would expose one to being exploited in the interaction. As such, we suggest that within a social domain a rational decision may not prevail over more emotional options following TSD, which has fundamental consequence for real-world decision making involving social exchange. Key Words: Sleep loss, trust, bargaining, social preference, interaction

Suggested Citation

  • Clare Anderson & David L. Dickinson, 2009. "Bargaining and Trust: The Effects of 36hr Total Sleep Deprivation on Socially Interactive Decisions," Working Papers 09-01, Department of Economics, Appalachian State University.
  • Handle: RePEc:apl:wpaper:09-01
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp0901.pdf
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    References listed on IDEAS

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    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    2. Oxoby, Robert J. & McLeish, Kendra N., 2004. "Sequential decision and strategy vector methods in ultimatum bargaining: evidence on the strength of other-regarding behavior," Economics Letters, Elsevier, vol. 84(3), pages 399-405, September.
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    Cited by:

    1. Dickinson, David L. & Oxoby, Robert J., 2011. "Cognitive dissonance, pessimism, and behavioral spillover effects," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 295-306, June.
    2. Dustin P. Calvillo & Jessica N. Burgeno, 2015. "Cognitive reflection predicts the acceptance of unfair ultimatum game offers," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 10(4), pages 332-341, July.
    3. Thorsten Chmura & Christoph Engel & Markus Englerth & Thomas Pitz, 2010. "At the Mercy of the Prisoner Next Door. Using an Experimental Measure of Selfishness as a Criminological Tool," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2010_27, Max Planck Institute for Research on Collective Goods.
    4. repec:cup:judgdm:v:10:y:2015:i:4:p:332-341 is not listed on IDEAS
    5. Cappelletti, Dominique & Güth, Werner & Ploner, Matteo, 2011. "Being of two minds: Ultimatum offers under cognitive constraints," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 940-950.

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    Keywords

    sleep loss; trust; bargaining; social preference; interaction;
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