Heartbeat and Economic Decisions: Observing Mental Stress among Proposers and Responders in the Ultimatum Bargaining Game
AbstractIn line with experimental economics' goal of better understanding human economic decision making, early research on the ultimatum bargaining game (see Schmittberger, and Schwarze 1982) demonstrated that motives other than pure monetary reward play a role. More recently, the development of of neuroeconomic research techniques has allowed physiological reactions to be recorded as signals of emotional response. In this study, we apply heart rate variability (HRV) to explore the behaviour and physiological reactions during the ultimatum bargaining game of not only responders but also proposers. Because this technology is small and non-intrusive, we are able to run our experiment using a standard experimental economic setup. We find that low offers by a proposer cause signs of mental stress in both the proposer and the responder; that is, both exhibit high ratios of low to high frequency activity in the HRV spectrum.
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Bibliographic InfoPaper provided by QUT Business School in its series QuBE Working Papers with number 003.
Date of creation: 14 Jan 2013
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Web page: http://www.qut.edu.au/research/research-projects/queensland-behavioural-economics-group-qube
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- Uwe Dulleck & Markus Schaffner & Benno Torgler, 2012. "Heartbeat and Economic Decisions: Observing Mental Stress among Proposers and Responders in the Ultimatum Bargaining Game," CREMA Working Paper Series 2012-21, Center for Research in Economics, Management and the Arts (CREMA).
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