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More than thirty years of ultimatum bargaining experiments: Motives, variations, and a survey of the recent literature

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  • Werner Güth

    ()
    (Max Planck Institute of Economics, Strategic Interaction Group)

  • Martin G. Kocher

    ()
    (University of Munich, University of Gothenburg and CESifo Munich)

Abstract

Take-it or leave-it offers are probably as old as mankind. Our objective here is, first, to provide a, probably subjectively-colored, recollection of the initial ultimatum game experiment, its motivation and the immediate responses. Second, we discuss important extensions of the standard ultimatum bargaining game in a unified framework, and, third, we offer a survey of the experimental ultimatum bargaining literature containing papers published since the turn of the century. The paper argues that the ultimatum game is an extremely versatile tool for research in bargaining and on social preferences. Finally, we provide examples for open research questions and directions for future studies.

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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2013-035.

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Date of creation: 16 Sep 2013
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Handle: RePEc:jrp:jrpwrp:2013-035

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Keywords: ultimatum bargaining; experiment; social preferences;

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Cited by:
  1. Jason Shachat & J. Todd Swarthout, 2013. "Auctioning the right to play ultimatum games and the impact on equilibrium selection," Experimental Economics Center Working Paper Series, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University 2013-01, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
  2. Mohamed I. Gomaa & Stuart Mestelman & Mohamed Shehata, 2014. "Social Distance, Reputation, Risk Attitude, Value Orientation and Equity in Economic Exchanges," Department of Economics Working Papers 2014-07, McMaster University.

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