The Ultimatum Game seems to be the ideal experiment to test for the structure of preferences or the sequential rationality assumptions underlying subgame perfection. We study the theoretical implications of introducing the possibility of misconceptions - that actions may potentially affect continuation payoffs - and show that the set of Perfect Bayesian Nash Equilibria does not converge to the subgame perfect equilibrium when the possibility of misconception approaches zero. The perfect equilibria studied corresponds qualitatively to the experimental findings of offers made and unfair offers rejected.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Microeconomics.ca Website in its series Micro Theory Working Papers with number
peters-07-03-31-11-46-48.