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Being in Someone Else's Shoes. Order of play and non-zero equilibria in the ultimatum game

Author

Listed:
  • Mario A. Maggioni

  • Domenico Rossignoli

Abstract

In this paper, we devise a randomized experiment to test whether the order of play in two Ultimatum Games influences the choice of players, using a sample of a thousand individuals representative of the entire Italian adult population. We find that, in the second game, Proposers increase the average share sent and Respondents reduce the minimum acceptable offer. Both effects increase the probability of reaching a nonzero equilibrium. Given that no result is known to the player during the games, we suggest a role for a raised awareness of the partner's preferences, preferred outcomes, and strategies in influencing the subject's behavior, and consequently the game's equilibria, in the second game.

Suggested Citation

  • Mario A. Maggioni & Domenico Rossignoli, 2022. "Being in Someone Else's Shoes. Order of play and non-zero equilibria in the ultimatum game," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis2203, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    • Handle: RePEc:dis:wpaper:dis2203
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    File URL: http://dipartimenti.unicatt.it/diseis-wp_2203.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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