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Country Differences in Ultimatum Wage Bargaining with a Real Task: Evidence from Greece, Spain and the UK

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Author Info

  • Aurora García-Gallego

    ()
    (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Nikolaos Georgantzís

    ()
    (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Ainhoa Jaramillo-Gutiérrez

    ()
    (LEE-Department of Economics, Universitat Jaume I-Castellón, ERICES-University of Valencia, Spain)

Abstract

We study ultimatum bargaining over the wage that should be paid in order to have a subject perform a given real task. Our results are obtained from experiments run in Greece, Spain and the UK. We find significantly higher wage offers and lower acceptance probabilities in the UK than in the other two countries. Interestingly, the combination of these two effects leads to higher wages in the British pool, without reducing market efficiency as compared to Spain and Greece. Country differences in both employer and employee behavior have a clear gender component.

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Bibliographic Info

Paper provided by Economics Department, Universitat Jaume I, Castellón (Spain) in its series Working Papers with number 2013/13.

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Length: 27 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:jau:wpaper:2013/13

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Keywords: ultimatum bargaining; real task; country differences;

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References

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  1. Chuah, Swee-Hoon & Hoffmann, Robert & Jones, Martin & Williams, Geoffrey, 2009. "An economic anatomy of culture: Attitudes and behaviour in inter- and intra-national ultimatum game experiments," Journal of Economic Psychology, Elsevier, vol. 30(5), pages 732-744, October.
  2. García-Gallego, Aurora & Georgantzís, Nikolaos & Jaramillo-Gutiérrez, Ainhoa, 2012. "Gender differences in ultimatum games: Despite rather than due to risk attitudes," Journal of Economic Behavior & Organization, Elsevier, vol. 83(1), pages 42-49.
  3. Chuah, Swee-Hoon & Hoffmann, Robert & Jones, Martin & Williams, Geoffrey, 2007. "Do cultures clash? Evidence from cross-national ultimatum game experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 35-48, September.
  4. Garcia-Gallego, Aurora & Georgantzis, Nikolaos & Jaramillo-Gutierrez, Ainhoa, 2008. "Ultimatum salary bargaining with real effort," Economics Letters, Elsevier, vol. 98(1), pages 78-83, January.
  5. Nancy Buchan & Rachel Croson, 1999. "Gender and Culture: International Experimental Evidence from Trust Games," American Economic Review, American Economic Association, vol. 89(2), pages 386-391, May.
  6. Eckel, Catherine C. & Grossman, Philip J., 2008. "Differences in the Economic Decisions of Men and Women: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
  7. Hessel Oosterbeek & Randolph Sloof & Gijs van de Kuilen, 2004. "Cultural differences in ultimatum game experiments: Evidence from a meta-analysis," Experimental 0401003, EconWPA.
  8. Anabela Botelho & Glenn W. Harrison & Marc A. Hirsch & Elisabet E. Rutstrom, 2001. "Bargaining behavior, demographics and nationality: a reconsideration of the experimental evidence," NIMA Working Papers 16, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  9. Eckel, Catherine C & Grossman, Philip J, 2001. "Chivalry and Solidarity in Ultimatum Games," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 171-88, April.
  10. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
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  1. Country Differences in Ultimatum Wage Bargaining with a Real Task: Evidence from Greece, Spain and the UK
    by maximorossi in NEP-LTV blog on 2013-10-15 13:41:39

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