Entitlement in a Real Effort Ultimatum Game
AbstractData from lab experiments support the claim that individuals have social preferences. Most models of social preferences, however, consider only the distribution of outcomes, not the source of the endowment used in the game. Once the source is considered, outcomes in the ultimatum game are more difficult to interpret. We extend the ultimatum game to allow for responder-produced endowments. We find that offers increase when the responder produces the endowment, but rejection rates are lower. Further, offers remain below 100% of the endowment, suggesting that unproductive proposers feel entitled to a part of the endowment, and responders respect this right.
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Bibliographic InfoPaper provided by University of Massachusetts Boston, Economics Department in its series Working Papers with number 14.
Length: 13 pages
Date of creation: Sep 2013
Date of revision:
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D30 - Microeconomics - - Distribution - - - General
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-02 (All new papers)
- NEP-CBE-2013-10-02 (Cognitive & Behavioural Economics)
- NEP-EXP-2013-10-02 (Experimental Economics)
- NEP-GTH-2013-10-02 (Game Theory)
- NEP-HPE-2013-10-02 (History & Philosophy of Economics)
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