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Ultimatum Games and Wages: Evidence of an “Implicit Bargain”?


  • Kerstin Pull


In this paper, I argue that both ultimatum game outcomes and wages may be in¬fluenced by what the result of a bargain would have been: The players in the ultimatum game, just as the parties to the labor contract, seem to engage in what may be called an “implicit” or, in Selten' s words, an “imaginary” bargain. In determining ultimatum game outcomes, assuming an implicit bargain can account for the experimental evidence on the role of responder bargaining power. Moreover, the implications of the implicit bar¬gain for the wage setting process are compatible with the stylized facts of wage determination.

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  • Kerstin Pull, 2003. "Ultimatum Games and Wages: Evidence of an “Implicit Bargain”?," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 55(2), pages 161-171, April.
  • Handle: RePEc:sbr:abstra:v:55:y:2003:i:2:p:161-171

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    Cited by:

    1. Siegfried K. Berninghaus & Werner Güth & Charlotte Klempt & Kerstin Pull, 2013. "Assessing Mental Models via Recording the Decision Deliberations of Pairs," Jena Economic Research Papers 2013-012, Friedrich-Schiller-University Jena.
    2. Maarten C.W. Janssen, 2006. "On the Strategic Use of Focal Points in Bargaining Situations," Tinbergen Institute Discussion Papers 06-040/1, Tinbergen Institute.
    3. Janssen, Maarten C.W., 2006. "On the strategic use of focal points in bargaining situations," Journal of Economic Psychology, Elsevier, vol. 27(5), pages 622-634, October.
    4. Waichman, Israel & Requate, Till & Korzhenevych, Artem, 2013. "Equal split in the informal market for group train travel," Economics Letters, Elsevier, vol. 118(2), pages 327-329.
    5. Werner Güth & Charlotte Klempt & kerstin Pull, 2015. "Mental Representation of Sharing Experimets: Analyzing Choice and Belief Data," IAW Discussion Papers 117, Institut für Angewandte Wirtschaftsforschung (IAW).
    6. repec:spr:homoec:v:34:y:2017:i:2:d:10.1007_s41412-017-0051-6 is not listed on IDEAS

    More about this item


    Ultimatum Game; Wage Determination; Nash Bargain.;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation


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