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The Effects of "Observability" on Rejection Behavior in Ultimatum Game Experiments

Author

Listed:
  • Miho Hong

    (Yale Univ)

  • Chulyoung Kim

    (Yonsei Univ)

  • Sang-Hyun Kim

    (Yonsei Univ)

  • Sangyoon Nam

    (U of Southern California)

Abstract

Using a modified ultimatum game experiment, we tested the hypothesis that greater “observability†of responders’ actions leads to a higher rejection rate. Our experimental data on participants’ rejection behavior rejected this hypothesis but confirmed the theory of reference-dependent preferences.

Suggested Citation

  • Miho Hong & Chulyoung Kim & Sang-Hyun Kim & Sangyoon Nam, 2019. "The Effects of "Observability" on Rejection Behavior in Ultimatum Game Experiments," Working papers 2019rwp-155, Yonsei University, Yonsei Economics Research Institute.
    • Handle: RePEc:yon:wpaper:2019rwp-155
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    More about this item

    Keywords

    Ultimatum game experiment; audience effect; signaling; loss aversion;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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