IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp1756.html
   My bibliography  Save this paper

The Entitlement Effect in the Ultimatum Game - Does It Even Exist?

Author

Listed:
  • Elif E. Demiral
  • Johanna Mollerstrom

Abstract

Since the seminal paper of Hoffman et al. (1994), an entitlement effect is believed to exist in the Ultimatum Game, in the sense that proposers who have earned their role (as opposed to having it randomly allocated) offer a smaller share of the pie to their matched responder. The entitlement effect is at the core of experimental Public Choice – not just because it concerns the topics of bargaining and negotiations, but also because it relates to the question about under which circumstances actors behave more rational. We conduct three experiments, two in the laboratory and one online, with more than 1,250 participants. Our original motivation was to study gender differences, but ultimately we could not replicate the entitlement effect in the Ultimatum Game in any of our three experiments. Potential reasons for why the replication attempts fail are discussed.

Suggested Citation

  • Elif E. Demiral & Johanna Mollerstrom, 2018. "The Entitlement Effect in the Ultimatum Game - Does It Even Exist?," Discussion Papers of DIW Berlin 1756, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1756
    as

    Download full text from publisher

    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.597678.de/dp1756.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November.
    2. Oechssler, Jörg & Roider, Andreas & Schmitz, Patrick W., 2009. "Cognitive abilities and behavioral biases," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 147-152, October.
    3. Catherine C. Eckel & Philip J. Grossman, 2002. "Sex Differences and Statistical Stereotyping in Attitudes Toward Financial Risk," Monash Economics Working Papers archive-03, Monash University, Department of Economics.
    4. Christoph Engel, 2011. "Dictator games: a meta study," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 583-610, November.
    5. Marcus Dittrich & Andreas Knabe & Kristina Leipold, 2014. "Gender Differences In Experimental Wage Negotiations," Economic Inquiry, Western Economic Association International, vol. 52(2), pages 862-873, April.
    6. Andreas Leibbrandt & John A. List, 2015. "Do Women Avoid Salary Negotiations? Evidence from a Large-Scale Natural Field Experiment," Management Science, INFORMS, vol. 61(9), pages 2016-2024, September.
    7. Arthur J. H. C. Schram, 2008. "Experimental Public Choice," Springer Books, in: Readings in Public Choice and Constitutional Political Economy, chapter 32, pages 579-591, Springer.
    8. Diermeier, Daniel & Gailmard, Sean, 2006. "Self-Interest, Inequality, and Entitlement in Majoritarian Decision-Making," Quarterly Journal of Political Science, now publishers, vol. 1(4), pages 327-350, October.
    9. Güth, Werner & Kocher, Martin G., 2014. "More than thirty years of ultimatum bargaining experiments: Motives, variations, and a survey of the recent literature," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 396-409.
    10. Eckel, Catherine C & Grossman, Philip J, 2001. "Chivalry and Solidarity in Ultimatum Games," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 171-188, April.
    11. Simon Gächter & Arno Riedl, 2005. "Moral Property Rights in Bargaining with Infeasible Claims," Management Science, INFORMS, vol. 51(2), pages 249-263, February.
    12. James Andreoni & Lise Vesterlund, 2001. "Which is the Fair Sex? Gender Differences in Altruism," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 293-312.
    13. Simon G�chter & Arno Riedl, "undated". "Moral Property Rights in Bargaining," IEW - Working Papers 113, Institute for Empirical Research in Economics - University of Zurich.
    14. Todd L. Cherry & Peter Frykblom & Jason F. Shogren, 2002. "Hardnose the Dictator," American Economic Review, American Economic Association, vol. 92(4), pages 1218-1221, September.
    15. Oxoby, Robert J. & Spraggon, John, 2008. "Mine and yours: Property rights in dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 703-713, March.
    16. Charles K. Rowley, 2008. "Public Choice and Constitutional Political Economy," Springer Books, in: Readings in Public Choice and Constitutional Political Economy, chapter 1, pages 3-29, Springer.
    17. Daniel J. Benjamin & Sebastian A. Brown & Jesse M. Shapiro, 2013. "Who Is ‘Behavioral’? Cognitive Ability And Anomalous Preferences," Journal of the European Economic Association, European Economic Association, vol. 11(6), pages 1231-1255, December.
    18. Cappelletti, Dominique & Güth, Werner & Ploner, Matteo, 2011. "Being of two minds: Ultimatum offers under cognitive constraints," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 940-950.
    19. Luigi Butera & John A. List, 2017. "An Economic Approach to Alleviate the Crises of Confidence in Science: With an Application to the Public Goods Game," NBER Working Papers 23335, National Bureau of Economic Research, Inc.
    20. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away From Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1067-1101.
    21. Ben-Ner, Avner & Kong, Fanmin & Putterman, Louis, 2004. "Share and share alike? Gender-pairing, personality, and cognitive ability as determinants of giving," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 581-589, October.
    22. Charles K. Rowley & Friedrich G. Schneider, 2008. "Readings in Public Choice and Constitutional Political Economy," Springer Books, Springer, number 978-0-387-75870-1, January.
    23. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    24. Solnick, Sara J, 2001. "Gender Differences in the Ultimatum Game," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 189-200, April.
    25. Hessel Oosterbeek & Randolph Sloof & Gijs van de Kuilen, 2004. "Cultural Differences in Ultimatum Game Experiments: Evidence from a Meta-Analysis," Experimental Economics, Springer;Economic Science Association, vol. 7(2), pages 171-188, June.
    26. Cherry, Todd L., 2001. "Mental accounting and other-regarding behavior: Evidence from the lab," Journal of Economic Psychology, Elsevier, vol. 22(5), pages 605-615, October.
    27. Korenok, Oleg & Millner, Edward & Razzolini, Laura, 2017. "Feelings of ownership in dictator games," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 145-151.
    28. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    29. Coren L. Apicella & Elif E. Demiral & Johanna Mollerstrom, 2017. "No Gender Difference in Willingness to Compete When Competing against Self," American Economic Review, American Economic Association, vol. 107(5), pages 136-140, May.
    30. Hernandez-Arenaz, & Iriberri, Nagore, 2018. "Gender Differences in Alternating-Offer Bargaining: An Experimental Study," CEPR Discussion Papers 12561, C.E.P.R. Discussion Papers.
    31. Camerer, Colin & Dreber, Anna & Forsell, Eskil & Ho, Teck-Hua & Huber, Jurgen & Johannesson, Magnus & Kirchler, Michael & Almenberg, Johan & Altmejd, Adam & Chan, Taizan & Heikensten, Emma & Holzmeist, 2016. "Evaluating replicability of laboratory experiments in Economics," MPRA Paper 75461, University Library of Munich, Germany.
    32. Hernandez-Arenaz, Iñigo & Iriberri, Nagore, 2018. "Women ask for less (only from men): Evidence from bargaining in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 192-214.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. DeAngelo, Gregory & Houser, Daniel & Romaniuc, Rustam, 2020. "Experimental public choice: An introduction to the special issue," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 278-280.
    2. Feltovich, Nick, 2019. "Is earned bargaining power more fully exploited?," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 152-180.
    3. Barber IV, Benjamin S. & English, William, 2019. "The origin of wealth matters: Equity norms trump equality norms in the ultimatum game with earned endowments," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 33-43.
    4. Christine L. Exley & Judd B. Kessler, 2018. "Equity Concerns are Narrowly Framed," NBER Working Papers 25326, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Demiral, Elif E. & Mollerstrom, Johanna, 2020. "The entitlement effect in the ultimatum game – does it even exist?," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 341-352.
    2. Elif E. Demiral & Johanna Mollerstrom, 2017. "Entitled Women – but Not Men – Make Tougher Strategic Demands as Proposers in the Ultimatum Game," Discussion Papers of DIW Berlin 1708, DIW Berlin, German Institute for Economic Research.
    3. Andrzej Baranski & D.J. da Cunha Batista Geraldes & Ada Kovaliukaite & James Tremewan, 2021. "Experiment on Gender Representation in Majoritarian Bargaining," Working Papers 2102, Utrecht School of Economics.
    4. Umer, Hamza, 2020. "Revisiting generosity in the dictator game: Experimental evidence from Pakistan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 84(C).
    5. Shuwen Li & Xiangdong Qin & Daniel Houser, 2018. "Revisiting gender differences in ultimatum bargaining: experimental evidence from the US and China," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(2), pages 180-190, December.
    6. Hernandez-Arenaz, & Iriberri, Nagore, 2018. "Gender Differences in Alternating-Offer Bargaining: An Experimental Study," CEPR Discussion Papers 12561, C.E.P.R. Discussion Papers.
    7. Rodriguez-Lara, Ismael, 2016. "Equity and bargaining power in ultimatum games," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 144-165.
    8. Güth, Werner & Kocher, Martin G., 2014. "More than thirty years of ultimatum bargaining experiments: Motives, variations, and a survey of the recent literature," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 396-409.
    9. Catherine Eckel & Lata Gangadharan & Philip J. Grossman & Nina Xue, 2021. "The gender leadership gap: insights from experiments," Chapters, in: Ananish Chaudhuri (ed.), A Research Agenda for Experimental Economics, chapter 7, pages 137-162, Edward Elgar Publishing.
    10. Jan Stoop, 2014. "From the lab to the field: envelopes, dictators and manners," Experimental Economics, Springer;Economic Science Association, vol. 17(2), pages 304-313, June.
    11. François Cochard & Alexandre Flage & Gilles Grolleau & Angela Sutan, 2020. "Are individuals more generous in loss contexts?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 845-866, December.
    12. Christine L. Exley & Muriel Niederle & Lise Vesterlund, 2020. "Knowing When to Ask: The Cost of Leaning In," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 816-854.
    13. Jürgen Fleiß, 2015. "Merit norms in the ultimatum game: an experimental study of the effect of merit on individual behavior and aggregate outcomes," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(2), pages 389-406, June.
    14. Breitmoser, Yves & Vorjohann, Pauline, 2018. "Welfare-Based Altruism," Rationality and Competition Discussion Paper Series 89, CRC TRR 190 Rationality and Competition.
    15. Li, Shuwen & Houser, Daniel, 2022. "Stochastic bargaining in the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 687-715.
    16. SeEun Jung & Radu Vranceanu, 2017. "Gender Interaction in Teams: Experimental Evidence on Performance and Punishment Behavior," Korean Economic Review, Korean Economic Association, vol. 33, pages 95-126.
    17. Azmat, Ghazala & Petrongolo, Barbara, 2014. "Gender and the labor market: What have we learned from field and lab experiments?," Labour Economics, Elsevier, vol. 30(C), pages 32-40.
    18. D'Exelle, Ben & Gutekunst, Christine & Riedl, Arno, 2020. "The Effect of Gender and Gender Pairing on Bargaining: Evidence from an Artefactual Field Experiment," Research Memorandum 034, Maastricht University, Graduate School of Business and Economics (GSBE).
    19. Qi, Tianxiao & Xu, Bin & Wu, Jinshan & Vriend, Nicolaas J., 2022. "On the Stochasticity of Ultimatum Games," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 227-254.
    20. Philip J. Grossman & Mana Komai & James E. Jensen, 2015. "Leadership and gender in groups: An experiment," Canadian Journal of Economics, Canadian Economics Association, vol. 48(1), pages 368-388, February.

    More about this item

    Keywords

    Ultimatum game; public choice; experiment; entitlement; negotiations; bargaining; replications; gender;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp1756. 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: . General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.