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Fairness Dominating Human Behavior in Ultimatum Bargaining GameInitiative

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  • Marc Piazolo

    (University of Applied Sciences Kaiserslautern)

Abstract

In 2013, we conducted an international field experiment on human behavior in South Africa and Germany. For this ulitmatum bargaining game, an inheritance of 12,000 ZAR (1,000 EUR) had to be split up. Three randomly selected participants slipped into the roles of the beneficiaries: Andy had the right to propose the distribution of the inheritance. Berta could either accept or reject the proposal. Carlos had no rights at all. As proposer, a large majority opted for an equal split. This was followed by the two power coalitions with 19% of the votes. Less than 4% opted for the proposal of homo oeconomicus (10,000-1,000-1,000 ZAR). Statistically significant differences in behavior exist between Germans and South Africans. In general, inequality aversion is much stronger among South Africans. While two thirds of South Africans propose an equal split, less than half of the Germans do. Gender as well as economic education also help to explain the internaitonal differences in behavior.

Suggested Citation

  • Marc Piazolo, 2015. "Fairness Dominating Human Behavior in Ultimatum Bargaining GameInitiative," Proceedings- 11th International Conference on Mangement, Enterprise and Benchmarking (MEB 2015),, Óbuda University, Keleti Faculty of Business and Management.
  • Handle: RePEc:pkk:meb015:171-182
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    References listed on IDEAS

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    1. Werner Güth & Carsten Schmidt & Matthias Sutter, 2003. "Fairness in the Mail and Opportunism in the Internet: A Newspaper Experiment on Ultimatum Bargaining," German Economic Review, Verein für Socialpolitik, vol. 4(2), pages 243-265, May.
    2. Werner Güth & Carsten Schmidt & Matthias Sutter, 2007. "Bargaining outside the lab - a newspaper experiment of a three-person ultimatum game," Economic Journal, Royal Economic Society, vol. 117(518), pages 449-469, March.
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