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Asymmetric Social Distance Effects in the Ultimatum Game

Author

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  • Vravosinos, Orestis
  • Konstantinou, Kyriakos

Abstract

We argue that in the ultimatum game the effects of altruistic behavior and reciprocity vary more in the spectrum of positively compared to negatively-valenced relationships. Thus, we suggest that social distance effects are asymmetric. Our experimental results support this hypothesis; in the region of positively-valenced relationships, the proposers increase the percentage they offer as relationship quality increases more drastically compared to when the relationship is negatively-valenced, in which case they appear more invariant to relationship effects. Also, by eliciting a minimum share which the responder is willing to accept out of the total sum, we provide clearer results on the social distance and stakes effects on the latter’s behavior. We find a negative effect of relationship quality on the minimum acceptable share. This contradicts a strand of the literature which suggests that closer-“in-group†individuals may be punished more severely, so that cooperation in a group is maintained.

Suggested Citation

  • Vravosinos, Orestis & Konstantinou, Kyriakos, 2019. "Asymmetric Social Distance Effects in the Ultimatum Game," Review of Behavioral Economics, now publishers, vol. 6(2), pages 159–192-1, April.
    • Handle: RePEc:now:jnlrbe:105.00000105
    DOI: 10.1561/105.00000105
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    More about this item

    Keywords

    Ultimatum game; social distance; other-regarding behavior; relationship; negative valence; asymmetry; stakes;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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