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Yours, Mine, and Ours: The Effect of Ersatz Property Rights on Outcome Based Fairness and Reciprocity

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Author Info
Oxoby, Robert J.
Spraggon, John

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Abstract

We report laboratory data on earned wealth effects in a series of anonymous dictator games. In addition to a standard (baseline) treatment in which wealth was determined by the experimenter, we conduct treatments in which either the dictator or the receiver earned wealth used in the subsequent dictator game. In our baseline treatment, we observe the standard result: on average, dictators allocate receivers twenty percent. In treatments where the dictator earned wealth, we observe the theoretic prediction of zero offers to receivers. In treatments where the receiver earned wealth, we observe distributions of offers in which the receiver’s share exceeds fifty percent. We interpret these results as evidence of the importance of property rights in determining individuals’ social preferences.

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File URL: http://mpra.ub.uni-muenchen.de/1535/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1535.

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Date of creation: 2004
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Handle: RePEc:pra:mprapa:1535

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Related research
Keywords: Dictator Games Property Rights Social Preferences

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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  1. McCabe, Kevin A. & Rigdon, Mary L. & Smith, Vernon L., 2003. "Positive reciprocity and intentions in trust games," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 267-275, October. [Downloadable!] (restricted)
  2. Simon Gächter & Arno Riedl, 2003. "Moral Property Rights in Bargaining with Infeasible Claims," Tinbergen Institute Discussion Papers 03-055/1, Tinbergen Institute. [Downloadable!]
  3. Cherry, Todd L., 2001. "Mental accounting and other-regarding behavior: Evidence from the lab," Journal of Economic Psychology, Elsevier, vol. 22(5), pages 605-615, October. [Downloadable!] (restricted)
  4. Arkes, Hal R. & Joyner, Cynthia A. & Pezzo, Mark V. & Nash, Jane Gradwohl & Siegel-Jacobs, Karen & Stone, Eric, 1994. "The Psychology of Windfall Gains," Organizational Behavior and Human Decision Processes, Elsevier, vol. 59(3), pages 331-347, September. [Downloadable!] (restricted)
  5. Dufwenberg, M. & Kirchsteiger, G., 1998. "A theory of sequential reciprocity," Discussion Paper 37, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  6. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series 1042, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
    Other versions:
  7. Fehr, Ernst & Kirchsteiger, George & Riedl, Arno, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 437-59, May. [Downloadable!] (restricted)
  8. James Konow, 2000. "Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions," American Economic Review, American Economic Association, vol. 90(4), pages 1072-1091, September. [Downloadable!] (restricted)
  9. Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon L, 1996. "Social Distance and Other-Regarding Behavior in Dictator Games," American Economic Review, American Economic Association, vol. 86(3), pages 653-60, June. [Downloadable!] (restricted)
  10. James Andreoni & William T. harbaugh & Lise Vesterlund, 2002. "The Carrot or the Stick: Rewards, Punishments, and Cooperation," University of Oregon Economics Department Working Papers 2002-01, University of Oregon Economics Department, revised 20 Aug 2002. [Downloadable!]
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  11. Sonnegard, Joakim, 1996. "Determination of first movers in sequential bargaining games: An experimental study," Journal of Economic Psychology, Elsevier, vol. 17(3), pages 359-386, June. [Downloadable!] (restricted)
  12. Arkes, Hal R. & Blumer, Catherine, 1985. "The psychology of sunk cost," Organizational Behavior and Human Decision Processes, Elsevier, vol. 35(1), pages 124-140, February. [Downloadable!] (restricted)
  13. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December. [Downloadable!] (restricted)
  14. Todd L. Cherry & Peter Frykblom & Jason F. Shogren, 2002. "Hardnose the Dictator," Working Papers 02-06, Department of Economics, Appalachian State University.
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  15. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May. [Downloadable!] (restricted)
  16. Ruffle, Bradley J., 1998. "More Is Better, But Fair Is Fair: Tipping in Dictator and Ultimatum Games," Games and Economic Behavior, Elsevier, vol. 23(2), pages 247-265, May. [Downloadable!] (restricted)
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