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The Evolution of Fairness under an Assortative Matching Rule in the Ultimatum Game

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  • Shirata, Yasuhiro
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    Abstract

    This paper studies how a matching rule affects the evolution of fairness in an ultimatum mini game. Gale et al. [1995] show that only selfish behaviour survives in the deterministic replicator dynamics under the random matching rule. In contrast, this paper shows that, under an assortative matching rule, the fair behaviour may survive at an asymptotically stable state.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/16910/1/070econDP08-12.pdf
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    Bibliographic Info

    Paper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2008-12.

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    Length: 15 p.
    Date of creation: Dec 2008
    Date of revision:
    Handle: RePEc:hit:econdp:2008-12

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    1. Alp E. Atakan, 2006. "Assortative Matching with Explicit Search Costs," Econometrica, Econometric Society, vol. 74(3), pages 667-680, 05.
    2. Shimer, R. & Smith, L., 1997. "Assortative Matching and Search," Working papers 97-2a, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. Binmore,K. & McCarthy,J. & Ponti,G. & ..., 1999. "A backward induction experiment," Working papers 34, Wisconsin Madison - Social Systems.
    4. 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.
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