Express Yourself: The Price of Fairness in a Simple Distribution Game

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Express Yourself: The Price of Fairness in a Simple Distribution Game

Author Info

Andreas Nicklisch ()

Abstract

A simple two-person distribution game similar to the ultimatum game is introduced. However, unlike the standard ultimatum game, responders can determine the payoff for the proposer in case of rejection. Therefore, they can express their concerns in monetary quantities. The experimental data are analyzed with respect to inequity aversion and intended punishment. The analysis casts doubt on a single motivation of responders' actions, but supports a combination of reciprocity and inequity aversion. ased on these findings, the data support a simple model for distribution preferences based on an increasing price for exposing responders to unkind offers.

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Publisher Info
Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Discussion Papers on Strategic Interaction with number 2004-36.

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Length: 20 pages
Date of creation: Nov 2004
Date of revision:
Handle: RePEc:esi:discus:2004-36

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D64 - Microeconomics - - Welfare Economics - - - Altruism

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-11-22 (All new papers)
NEP-CBE-2004-11-22 (Cognitive & Behavioural Economics)

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Other versions:
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