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An Experimental Analysis of the Ultimatum Game: The Role of Competing Motivations

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  • Lorand Ambrus-Lakatos

    ()
    (Department of Political Science Central European University)

  • Tamas Meszerics

    ()
    (Department of Political Science Central European University)

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    Abstract

    This paper forwards a new way of accounting for the experimental evidence related to the Ultimatum Game. We argue that players in this game have reasons to be both fair and self-interested, but the balance between these two considerations cannot be expressed in terms of a tradeoff. We test our thesis by perturbing the Ultimatum Game in a way that emphasizes the force of self-interest considerations; the evidence we collected provides support for our thesis.

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    File URL: http://www.econ.core.hu/file/download/mtdp/mtdp019osszes.pdf
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    Bibliographic Info

    Paper provided by Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences in its series IEHAS Discussion Papers with number 0109.

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    Length: 25 pages
    Date of creation: Nov 2001
    Date of revision:
    Handle: RePEc:has:discpr:0109

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    1. Cameron, Lisa A, 1999. "Raising the Stakes in the Ultimatum Game: Experimental Evidence from Indonesia," Economic Inquiry, Western Economic Association International, vol. 37(1), pages 47-59, January.
    2. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
    3. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    4. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages S285-300, October.
    5. A. Roth & I. Er’ev, 2010. "Learning in Extensive Form Games: Experimental Data and Simple Dynamic Models in the Intermediate Run," Levine's Working Paper Archive 387, David K. Levine.
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