Inequity Aversion, Reciprocity, and Appropriateness in the Ultimatum-Revenge Game

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Inequity Aversion, Reciprocity, and Appropriateness in the Ultimatum-Revenge Game

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Andreas Nicklisch () (Max Planck Institute for Research on Collective Goods, Bonn)

Abstract

This article reports the results of a simple bargaining experiment on the ultimatum-revenge game. The game enables to differentiate between fairness that is stimulated by intentional based motives, distributional motives, and fairness considerations that mix both motives. The laboratory experiments indicate considerable heterogeneity of motives. A majority of subjects seem to combine both motives. However, the composition of the mix is subject to a transition, which can be formalized by the principle of appropriateness. In contrast to contemporary reciprocity models, this approach suggests that mildly unkind treatments are responded mildly unkindly, while strong unkindness leads to harsh reactions.

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Paper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2008_24.

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Date of creation: Jun 2008
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Handle: RePEc:mpg:wpaper:2008_24

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D64 - Microeconomics - - Welfare Economics - - - Altruism

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