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

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Author Info

  • Akira Okada

    (Kyoto University)

  • Arno Riedl

    ()
    (CREED, University of Amsterdam)

Abstract

This paper reports the results of a cross-country comparison between Austria andJapan for an experimental 3-personcoalition formation ultimatum game. The experimental design allows thecomparison with respect to three decisions. (i)The coalition decision, (ii) proposers' demand behavior in 2- and 3-personultimatum subgames, and (iii) theresponders' behavior in these subgames. In contrast to other cross-culturalstudies in experimental bargainingenvironments we can not find any (significant) difference in behavior betweensubjects in Austria and Japan. Weattribute the behavioral similarities mainly to a subtle focal point andresponder competition effect, which wipe outpossible cultural differences. Our conclusion is that even in environments -like bargaining - where cultural differencesmay play a prominent role the show-up of these differences is highly sensitiveto the exact context in which people act.

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Bibliographic Info

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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References

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  1. Brandts, J. & Saijo, T. & Schram, A., 2000. "A Four Country Comparision of Spite, Cooperation and Errors in Voluntary Contribution Mechanisms," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0496, Institute of Social and Economic Research, Osaka University.
  2. Cason, T.N. & Saijo, T. & Yamato, T., 2000. "Voluntary Participation and Spite in Public Good Provision Experiments: an International Comparison," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0491, Institute of Social and Economic Research, Osaka University.
  3. Okada, Akira & Riedl, Arno, 2005. "Inefficiency and social exclusion in a coalition formation game: experimental evidence," Games and Economic Behavior, Elsevier, Elsevier, vol. 50(2), pages 278-311, February.
  4. Robert Slonim & Alvin E. Roth, 1998. "Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic," Econometrica, Econometric Society, Econometric Society, vol. 66(3), pages 569-596, May.
  5. Kachelmeier, Steven J. & Shehata, Mohamed, 1992. "Culture and competition: A laboratory market comparison between China and the West," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 19(2), pages 145-168, October.
  6. 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, American Economic Association, vol. 81(5), pages 1068-95, December.
  7. Guth, Werner & Tietz, Reinhard, 1990. "Ultimatum bargaining behavior : A survey and comparison of experimental results," Journal of Economic Psychology, Elsevier, Elsevier, vol. 11(3), pages 417-449, September.
  8. Lensberg, T. & Heijden, E.C.M. van der, 1998. "A cross-cultural study of reciprocity, trust and altruism in a gift exchange experiment," Discussion Paper, Tilburg University, Center for Economic Research 1998-77, Tilburg University, Center for Economic Research.
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Cited by:
  1. Akira Okada & Arno Riedl, 1999. "Inefficiency and Social Exclusion in a Coalition Formation Game: Experimental Evidence," Tinbergen Institute Discussion Papers, Tinbergen Institute 99-044/1, Tinbergen Institute.
  2. Calvin Blackwell & Michael McKee, 2010. "Is There a Bias Toward Contributing to Local Public Goods? Cultural Effects," Forum for Social Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(3), pages 243-257, January.
  3. Cason, T.N. & Saijo, T. & Yamato, T., 2000. "Voluntary Participation and Spite in Public Good Provision Experiments: an International Comparison," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0491, Institute of Social and Economic Research, Osaka University.
  4. Olga Bogach & Andreas Leibbrandt, 2011. "An Experimental Study on the Relevance and Scope of Culture as a Focal Point," Working Papers, University of Hawaii at Manoa, Department of Economics 201104, University of Hawaii at Manoa, Department of Economics.
  5. repec:dgr:uvatin:1999044 is not listed on IDEAS
  6. Okada, Akiro & Riedl, Arno, 1999. "Inefficiency and Social Exclusion in a Coalition Formation Game," Economics Series, Institute for Advanced Studies 64, Institute for Advanced Studies.
  7. Chen, Kang & Tang, Fang-Fang, 2009. "Cultural differences between Tibetans and ethnic Han Chinese in ultimatum bargaining experiments," European Journal of Political Economy, Elsevier, Elsevier, vol. 25(1), pages 78-84, March.
  8. Akai, Kenju & Netzer, Robert Jiro, 2012. "Trust and reciprocity among international groups: Experimental evidence from Austria and Japan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 41(2), pages 266-276.
  9. James Konow & Tatsuyoshi Saijo & Kenju Akai, 2008. "Morals and Mores? Experimental Evidence on Equity and Equality from the US and Japan," Levine's Working Paper Archive 122247000000002055, David K. Levine.
  10. repec:dgr:uvatin:2099044 is not listed on IDEAS
  11. Simon Gächter & Ernst Fehr, . "Fairness in the Labour Market – A Survey of Experimental Results," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 114, Institute for Empirical Research in Economics - University of Zurich.

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