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When Culture does not matter: Experimental Evidence from Coalition Formation Ultimatum Games in Austria and Japan

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Akira Okada (Kyoto University)
Arno Riedl () (CREED, University of Amsterdam)

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Abstract

This paper reports the results of a cross-country comparison between Austria and Japan for an experimental 3-person coalition formation ultimatum game. The experimental design allows the comparison with respect to three decisions. (i) The coalition decision, (ii) proposers' demand behavior in 2- and 3-person ultimatum subgames, and (iii) the responders' behavior in these subgames. In contrast to other cross-cultural studies in experimental bargaining environments we can not find any (significant) difference in behavior between subjects in Austria and Japan. We attribute the behavioral similarities mainly to a subtle focal point and responder competition effect, which wipe out possible cultural differences. Our conclusion is that even in environments - like bargaining - where cultural differences may play a prominent role the show-up of these differences is highly sensitive to the exact context in which people act.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 99-043/1.

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Date of creation: 11 Jun 1999
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Handle: RePEc:dgr:uvatin:19990043

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  1. Roth, Alvin E. & Vesna Prasnikar & Masahiro Okuno-Fujiwara & Shmuel Zamir, 1991. "Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study," American Economic Review, American Economic Association, vol. 81(5), pages 1068-95, December. [Downloadable!] (restricted)
  2. Guth, Werner & Tietz, Reinhard, 1990. "Ultimatum bargaining behavior : A survey and comparison of experimental results," Journal of Economic Psychology, Elsevier, vol. 11(3), pages 417-449, September. [Downloadable!] (restricted)
  3. Robert Slonim & Alvin E. Roth, 1998. "Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic," Econometrica, Econometric Society, vol. 66(3), pages 569-596, May.
  4. Cason, T.N. & Saijo, T. & Yamato, T., 1998. "Voluntary Participation and Spite in Public Good Provision Experiments: an International Comparison," Papers 98-002, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
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  5. Okada, Akira & Riedl, Arno, 2005. "Inefficiency and social exclusion in a coalition formation game: experimental evidence," Games and Economic Behavior, Elsevier, vol. 50(2), pages 278-311, February. [Downloadable!] (restricted)
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  6. Kachelmeier, Steven J. & Shehata, Mohamed, 1992. "Culture and competition: A laboratory market comparison between China and the West," Journal of Economic Behavior & Organization, Elsevier, vol. 19(2), pages 145-168, October. [Downloadable!] (restricted)
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  1. Akira Okada & Arno Riedl, 1999. "Inefficiency and Social Exclusion in a Coalition Formation Game: Experimental Evidence," Tinbergen Institute Discussion Papers 99-044/1, Tinbergen Institute. [Downloadable!]
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  2. Timothy Cason & Tatsuyoshi Saijo & Takehiko Yamato, 2002. "Voluntary Participation and Spite in Public Good Provision Experiments: An International Comparison," Experimental Economics, Springer, vol. 5(2), pages 133-153, October. [Downloadable!] (restricted)
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