Responders’ dissatisfaction may provoke fair offer
In this article, we attempt to explain the fair outcome of ultimatum game experiments using the evolutionary dynamics. The players of the game, the proposers and the responders, are randomly matched to play the game. When the responders face low offers from the proposers, their decisions are influenced by not only the monetary payoff but also their feelings. To quantify the responders’ feelings, a degree of dissatisfaction is introduced into the game. Asymmetrical replicator dynamics is used to study the evolution of the proportion of players with different strategies. The solutions of the differential equations exhibit complex outcomes mainly depending on the degree of dissatisfaction. It could also be inferred from our results that people can maintain their rights and interests well when they have a strong sense of unfairness. Copyright Springer-Verlag 2012
Volume (Year): 7 (2012)
Issue (Month): 2 (October)
|Contact details of provider:|| Web page: http://www.springer.com/economics/economic+theory/journal/11403|
|Order Information:||Web: http://link.springer.de/orders.htm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
252, David K. Levine.
- Gary E Bolton & Rami Zuwick, 2010.
"Anonymity versus punishments in ultimatum bargaining,"
Levine's Working Paper Archive
826, David K. Levine.
- Bolton Gary E. & Zwick Rami, 1995. "Anonymity versus Punishment in Ultimatum Bargaining," Games and Economic Behavior, Elsevier, vol. 10(1), pages 95-121, July.
- Georg Kirchsteiger, 1994.
"The role of envy in ultimatum games,"
ULB Institutional Repository
2013/5925, ULB -- Universite Libre de Bruxelles.
- Burnell, Stephen J. & Evans, Lewis & Yao, Shuntian, 1999.
"The Ultimatum Game: Optimal Strategies without Fairness,"
Games and Economic Behavior,
Elsevier, vol. 26(2), pages 221-252, January.
- Evans, Lewis & Burnell, Stephen & Yao, Shuntian, 1999. "The Ultimatum Game: Optimal Strategies without Fairness," Working Paper Series 3939, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
- Brenner, Thomas & Vriend, Nicolaas J., 2006.
"On the behavior of proposers in ultimatum games,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 61(4), pages 617-631, December.
- T. Brenner & N.J. Vriend, 2003. "On the Behavior of Proposers in Ultimatum Games," Papers on Economics and Evolution 2003-08, Philipps University Marburg, Department of Geography.
- Thomas Brenner & Nicolaas J. Vriend, 2003. "On the Behavior of Proposers in Ultimatum Games," Working Papers 502, Queen Mary University of London, School of Economics and Finance.
- Thomas Brenner & Nicolaas J. Vriend, 2003. "On the Behavior of Proposers in Ultimatum Games," CEEL Working Papers 0304, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
- Fehr, Ernst & Schmidt, Klaus M., 1998.
"A Theory of Fairness, Competition and Cooperation,"
CEPR Discussion Papers
1812, C.E.P.R. Discussion Papers.
- Fehr, Ernst & Schmidt, Klaus M., . "A theory of fairness, competition, and cooperation," Chapters in Economics, University of Munich, Department of Economics.
- Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
- Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
- Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
- David Dickinson, 2000. "Ultimatum decision-making: A test of reciprocal kindness," Theory and Decision, Springer, vol. 48(2), pages 151-177, March.
- Robert Hoffmann & Jin-Yee Tee, 2003.
"Adolescent-Adult Interactions and Culture in the Ultimatum Game,"
5, Industrial Economics Division.
- Hoffmann, Robert & Tee, Jin-Yee, 2006. "Adolescent-adult interactions and culture in the ultimatum game," Journal of Economic Psychology, Elsevier, vol. 27(1), pages 98-116, February.
- Robert Hoffmann & Jin-Yee Tee, 2003. "Adolescent-Adult Interactions and Culture in the Ultimatum Game," Occasional Papers 4, Nottingham University Business School.
- Bolton, Gary E, 1991.
"A Comparative Model of Bargaining: Theory and Evidence,"
American Economic Review,
American Economic Association, vol. 81(5), pages 1096-136, December.
- G. Bolton, 2010. "A comparative model of bargaining: theory and evidence," Levine's Working Paper Archive 263, David K. Levine.
- Napel, Stefan, 2003. "Aspiration adaptation in the ultimatum minigame," Games and Economic Behavior, Elsevier, vol. 43(1), pages 86-106, April.
- Guth, Werner & Tietz, Reinhard, 1990. "Ultimatum bargaining behavior : A survey and comparison of experimental results," Journal of Economic Psychology, Elsevier, vol. 11(3), pages 417-449, September.
When requesting a correction, please mention this item's handle: RePEc:spr:jeicoo:v:7:y:2012:i:2:p:197-207. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.