IDEAS home Printed from https://ideas.repec.org/p/tiu/tiutis/e0955204-a76f-415b-9fdb-40197d5e8570.html
   My bibliography  Save this paper

Fairness, Public Good, and Emotional Aspects of Punishment Behavior

Author

Listed:
  • Abbink, K.
  • Sadrieh, A.

    (Tilburg University, School of Economics and Management)

  • Zamir, S.

Abstract

We report an experiment on two treatments of an ultimatum minigame. In one treatment, responders’ reactions are hidden to proposers. We observe high rejection rates reflecting responders’ intrinsic resistance to unfairness. In the second treatment, proposers are informed, allowing for dynamic effects over eight rounds of play. The higher rejection rates can be attributed to responders’ provision of a public good: Punishment creates a group reputation for being “toughâ€\x9D and effectively “educateâ€\x9D proposers. Since rejection rates with informed proposers drop to the level of the treatment with non-informed proposers, the hypothesis of responder’s enjoyment of overt punishment is not supported. Copyright Kluwer Academic Publishers 2004
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Abbink, K. & Sadrieh, A. & Zamir, S., 2002. "Fairness, Public Good, and Emotional Aspects of Punishment Behavior," Other publications TiSEM e0955204-a76f-415b-9fdb-4, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:e0955204-a76f-415b-9fdb-40197d5e8570
    as

    Download full text from publisher

    File URL: https://pure.uvt.nl/ws/portalfiles/portal/541894/38.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bolton, Gary E, 1991. "A Comparative Model of Bargaining: Theory and Evidence," American Economic Review, American Economic Association, vol. 81(5), pages 1096-1136, December.
    2. Roth, Alvin E. & Erev, Ido, 1995. "Learning in extensive-form games: Experimental data and simple dynamic models in the intermediate term," Games and Economic Behavior, Elsevier, vol. 8(1), pages 164-212.
    3. Dufwenberg, Martin & Kirchsteiger, Georg, 2004. "A theory of sequential reciprocity," Games and Economic Behavior, Elsevier, vol. 47(2), pages 268-298, May.
    4. Colin Camerer & Teck-Hua Ho, 1999. "Experience-weighted Attraction Learning in Normal Form Games," Econometrica, Econometric Society, vol. 67(4), pages 827-874, July.
    5. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    6. Thaler, Richard H, 1988. "The Ultimatum Game," Journal of Economic Perspectives, American Economic Association, vol. 2(4), pages 195-206, Fall.
    7. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    8. Yun Joo Jung & John H. Kagel & Dan Levin, 1994. "On the Existence of Predatory Pricing: An Experimental Study of Reputation and Entry Deterrence in the Chain-Store Game," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 72-93, Spring.
    9. Bolton Gary E. & Zwick Rami, 1995. "Anonymity versus Punishment in Ultimatum Bargaining," Games and Economic Behavior, Elsevier, vol. 10(1), pages 95-121, July.
    10. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    11. Gale, John & Binmore, Kenneth G. & Samuelson, Larry, 1995. "Learning to be imperfect: The ultimatum game," Games and Economic Behavior, Elsevier, vol. 8(1), pages 56-90.
    12. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    13. Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-881, September.
    14. Abbink, Klaus & Bolton, Gary E. & Sadrieh, Abdolkarim & Tang, Fang-Fang, 2001. "Adaptive Learning versus Punishment in Ultimatum Bargaining," Games and Economic Behavior, Elsevier, vol. 37(1), pages 1-25, October.
    15. Brandts, Jordi & Holt, Charles A, 1992. "An Experimental Test of Equilibrium Dominance in Signaling Games," American Economic Review, American Economic Association, vol. 82(5), pages 1350-1365, December.
    16. Abbink, Klaus, 2004. "Staff rotation as an anti-corruption policy: an experimental study," European Journal of Political Economy, Elsevier, vol. 20(4), pages 887-906, November.
    17. Camerer, Colin & Weigelt, Keith, 1988. "Experimental Tests of a Sequential Equilibrium Reputation Model," Econometrica, Econometric Society, vol. 56(1), pages 1-36, January.
    18. Colin F. Camerer & Richard H. Thaler, 1995. "Anomalies: Ultimatums, Dictators and Manners," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 209-219, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ralph-C. Bayer & Hang Wu, 2013. "Do We Learn from Our Own Experience or from Observing Others?," School of Economics and Public Policy Working Papers 2013-21, University of Adelaide, School of Economics and Public Policy.
    2. Bryan K. Church & Xi (Jason) Kuang, 2009. "Conflicts of Interest, Disclosure, and (Costly) Sanctions: Experimental Evidence," The Journal of Legal Studies, University of Chicago Press, vol. 38(2), pages 505-532, June.
    3. Andersson, Ola & Galizzi, Matteo M. & Hoppe, Tim & Kranz, Sebastian & der Wiel, Karen van & Wengström, Erik, 2010. "Persuasion in experimental ultimatum games," Economics Letters, Elsevier, vol. 108(1), pages 16-18, July.
    4. Vyrastekova, Jana & Funaki, Yukihiko & Takeuchi, Ai, 2011. "Sanctioning as a social norm: Expectations of non-strategic sanctioning in a public goods game experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 919-928.
    5. Vyrastekova, J. & Funaki, Y. & Takeuchi, A., 2008. "Strategic vs Non-Strategic Motivations of Sanctioning," Discussion Paper 2008-48, Tilburg University, Center for Economic Research.
    6. Bruttel, Lisa V., 2009. "Group dynamics in experimental studies--The Bertrand Paradox revisited," Journal of Economic Behavior & Organization, Elsevier, vol. 69(1), pages 51-63, January.
    7. Desai, Raj M. & Olofsgård, Anders, 2019. "Can the poor organize? Public goods and self-help groups in rural India," World Development, Elsevier, vol. 121(C), pages 33-52.
    8. Sadrieh, A. & Verbon, H.A.A., 2002. "Inequality, trust and growth : An experimental study," Discussion Paper 2002-84, Tilburg University, Center for Economic Research.
    9. Armantier, Olivier, 2004. "Does observation influence learning?," Games and Economic Behavior, Elsevier, vol. 46(2), pages 221-239, February.
    10. Sadrieh, Abdolkarim & Verbon, Harrie A.A., 2006. "Inequality, cooperation, and growth: An experimental study," European Economic Review, Elsevier, vol. 50(5), pages 1197-1222, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gagen, Michael, 2013. "Isomorphic Strategy Spaces in Game Theory," MPRA Paper 46176, University Library of Munich, Germany.
    2. Camerer, Colin F. & Ho, Teck-Hua, 2015. "Behavioral Game Theory Experiments and Modeling," Handbook of Game Theory with Economic Applications,, Elsevier.
    3. Fehr, Ernst & Schmidt, Klaus M., 2005. "The Economics of Fairness, Reciprocity and Altruism – Experimental Evidence and New Theories," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 66, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    4. Bolton, Gary E. & Ockenfels, Axel, 2014. "Does laboratory trading mirror behavior in real world markets? Fair bargaining and competitive bidding on eBay," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 143-154.
    5. Abbink, Klaus & Bolton, Gary E. & Sadrieh, Abdolkarim & Tang, Fang-Fang, 2001. "Adaptive Learning versus Punishment in Ultimatum Bargaining," Games and Economic Behavior, Elsevier, vol. 37(1), pages 1-25, October.
    6. Binmore, Ken & McCarthy, John & Ponti, Giovanni & Samuelson, Larry & Shaked, Avner, 2002. "A Backward Induction Experiment," Journal of Economic Theory, Elsevier, vol. 104(1), pages 48-88, May.
    7. Ernst Fehr & Klaus M. Schmidt, "undated". "Theories of Fairness and Reciprocity - Evidence and Economic Applications," IEW - Working Papers 075, Institute for Empirical Research in Economics - University of Zurich.
    8. Olivier Armantier, 2006. "Do Wealth Differences Affect Fairness Considerations?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(2), pages 391-429, May.
    9. Güth, Werner & Kocher, Martin G., 2014. "More than thirty years of ultimatum bargaining experiments: Motives, variations, and a survey of the recent literature," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 396-409.
    10. James Andreoni & Emily Blanchard, 2006. "Testing subgame perfection apart from fairness in ultimatum games," Experimental Economics, Springer;Economic Science Association, vol. 9(4), pages 307-321, December.
    11. Stahl, Dale O. & Haruvy, Ernan, 2008. "Subgame perfection in ultimatum bargaining trees," Games and Economic Behavior, Elsevier, vol. 63(1), pages 292-307, May.
    12. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    13. Costa-Gomes, Miguel & Zauner, Klaus G., 2001. "Ultimatum Bargaining Behavior in Israel, Japan, Slovenia, and the United States: A Social Utility Analysis," Games and Economic Behavior, Elsevier, vol. 34(2), pages 238-269, February.
    14. Gary Bolton, 1998. "Bargaining and Dilemma Games: From Laboratory Data Towards Theoretical Synthesis," Experimental Economics, Springer;Economic Science Association, vol. 1(3), pages 257-281, December.
    15. Abbink, Klaus & Darziv, Ron & Gilula, Zohar & Goren, Harel & Irlenbusch, Bernd & Keren, Arnon & Rockenbach, Bettina & Sadrieh, Abdolkarim & Selten, Reinhard & Zamir, Shmuel, 2003. "The Fisherman's Problem: Exploring the tension between cooperative and non-cooperative concepts in a simple game," Journal of Economic Psychology, Elsevier, vol. 24(4), pages 425-445, August.
    16. Werner G³th, 2001. "How Ultimatum Offers Emerge: A Study in Bounded Rationality," Homo Oeconomicus, Institute of SocioEconomics, vol. 18, pages 91-110.
    17. David Cooper & E. Dutcher, 2011. "The dynamics of responder behavior in ultimatum games: a meta-study," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 519-546, November.
    18. Christian Korth, 2009. "Reciprocity—An Indirect Evolutionary Analysis," Lecture Notes in Economics and Mathematical Systems, in: Fairness in Bargaining and Markets, chapter 0, pages 35-55, Springer.
    19. van Damme, Eric & Binmore, Kenneth G. & Roth, Alvin E. & Samuelson, Larry & Winter, Eyal & Bolton, Gary E. & Ockenfels, Axel & Dufwenberg, Martin & Kirchsteiger, Georg & Gneezy, Uri & Kocher, Martin G, 2014. "How Werner Güth's ultimatum game shaped our understanding of social behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 292-318.
    20. Gary Bolton & Axel Ockenfels, 2005. "A stress test of fairness measures in models of social utility," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 25(4), pages 957-982, June.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tiu:tiutis:e0955204-a76f-415b-9fdb-40197d5e8570. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richard Broekman (email available below). General contact details of provider: https://www.tilburguniversity.edu/about/schools/economics-and-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.