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Does Wealth Affect Fairness Considerations?

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  • Olivier Armantier

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Abstract

The influence of wealth on fairness considerations is analyzed in a series of ultimatum game experiments where proposers and receivers are given large and widely unequal initial endowments. Subjects initially demonstrate a concern for fairness. With time however, behavior becomes inconsistent with both fairness and subgame perfection. Clear evidence of learning is detected for both proposers and receivers in the estimation of a general reinforcement learning model. The results also indicate that, unlike their opponents, poor subjects i) are essentially influenced by their own experience rather than past best responses; ii) lose their ability to punish greedy bevhavior, and iii) learn to expect less.

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Bibliographic Info

Paper provided by Stony Brook University, Department of Economics in its series Department of Economics Working Papers with number 01-05.

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Date of creation: 2001
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Handle: RePEc:nys:sunysb:01-05

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Cited by:
  1. Antoni Bosch-Domènech & Joaquim Silvestre, 2003. "Do the Wealthy Risk More Money? An Experimental Comparison," Discussion Papers 03-15, University of Copenhagen. Department of Economics.

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