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

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  • 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.

Suggested Citation

  • Andreas Nicklisch, 2004. "Express Yourself: The Price of Fairness in a Simple Distribution Game," Papers on Strategic Interaction 2004-36, Max Planck Institute of Economics, Strategic Interaction Group.
    • Handle: RePEc:esi:discus:2004-36
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    References listed on IDEAS

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    More about this item

    Keywords

    ultimatum bargaining; inequity aversion; efficiency concerns; fairness preferences;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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