IDEAS home Printed from https://ideas.repec.org/a/cup/judgdm/v16y2021i3p743-766_7.html
   My bibliography  Save this article

Does a second offer that becomes irrelevant affect fairness perceptions and willingness to accept in the ultimatum game?

Author

Listed:
  • Voslinsky, Alisa
  • Lahav, Yaron
  • Azar, Ofer H.

Abstract

We develop a modified ultimatum game, in which the proposer gives two offers, and the responder selects one offer out of the two without seeing them. Then, the selected offer becomes the relevant offer, and the unselected offer becomes the irrelevant one. Finally, the responder evaluates the fairness of the pair of offers and makes a hypothetical decision whether to accept or reject the relevant offer. For most of our subjects, the level of the irrelevant offer positively affects fairness perceptions and willingness to accept, even though the irrelevant offer cannot be accepted. The reason is that the irrelevant offer does signal the proposer’s intentions. Most responders give more weight to the relevant offer than to the irrelevant offer in evaluating fairness and in the willingness to accept. We call this effect the relevance effect. This effect is expected when considering the willingness to accept. However, it is unclear why the relevant offer should carry more weight when evaluating fairness, because the proposer makes the two offers together without knowing which one will become the relevant one. Therefore, this behavior can be considered a bias in fairness evaluations.

Suggested Citation

  • Voslinsky, Alisa & Lahav, Yaron & Azar, Ofer H., 2021. "Does a second offer that becomes irrelevant affect fairness perceptions and willingness to accept in the ultimatum game?," Judgment and Decision Making, Cambridge University Press, vol. 16(3), pages 743-766, May.
  • Handle: RePEc:cup:judgdm:v:16:y:2021:i:3:p:743-766_7
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1930297500007816/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    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:cup:judgdm:v:16:y:2021:i:3:p:743-766_7. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jdm .

    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.