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Participation costs for responders can reduce rejection rates in ultimatum bargaining

  • Wichardt, Philipp C.
  • Schunk, Daniel
  • Schmitz, Patrick W.

The data reported in this paper show that in an ultimatum mini-game rejection rates of low offers are significantly reduced if participation for responders is voluntary but costly. A possible explanation based on cognitive dissonance and loss aversion is offered.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4VDY7WG-1/2/9a137c8397bbdc1852da6645f7cfe732
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 103 (2009)
Issue (Month): 1 (April)
Pages: 33-35

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Handle: RePEc:eee:ecolet:v:103:y:2009:i:1:p:33-35
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  9. Oxoby, Robert J. & McLeish, Kendra N., 2004. "Sequential decision and strategy vector methods in ultimatum bargaining: evidence on the strength of other-regarding behavior," Economics Letters, Elsevier, vol. 84(3), pages 399-405, September.
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  13. Brandts, Jordi & Sola, Carles, 2001. "Reference Points and Negative Reciprocity in Simple Sequential Games," Games and Economic Behavior, Elsevier, vol. 36(2), pages 138-157, August.
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  17. Akerlof, George A & Dickens, William T, 1982. "The Economic Consequences of Cognitive Dissonance," American Economic Review, American Economic Association, vol. 72(3), pages 307-19, June.
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