IDEAS home Printed from https://ideas.repec.org/p/igi/igierp/621.html
   My bibliography  Save this paper

Frustration and Anger in the Ultimatum Game: An Experiment

Author

Listed:
  • Chiara Aina
  • Pierpaolo Battigalli
  • Astrid Gamba

Abstract

In social dilemmas, choices may depend on belief-dependent motivations enhancing the credibility of promises or threats at odds with personal gain maximization. We address this issue theoretically and experimentally in the context of the Ultimatum Minigame, assuming that the choice of accepting or rejecting an unfair proposal is affected by a combination of frustration, due to unfulfilled expectations, and inequity aversion. We increase the responder's payoff from the default allocation (the proposer's outside option) with the purpose of increasing the responder's frustration due to the unfair proposal, and thus his willingness to reject it. In addition, we manipulate the method of play, with the purpose of switching on (direct response method) and off (strategy method) the responder's experience of anger. Our behavioral predictions across and within treatments are derived from the theoretical model complemented by explicit auxiliary assumptions, without relying on equilibrium analysis. Keywords: Experiments, psychological games, ultimatum minigame, frustration, anger, non-equilibrium analysis. JEL classification: C72, C91, D03.

Suggested Citation

  • Chiara Aina & Pierpaolo Battigalli & Astrid Gamba, 2018. "Frustration and Anger in the Ultimatum Game: An Experiment," Working Papers 621, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  • Handle: RePEc:igi:igierp:621
    as

    Download full text from publisher

    File URL: https://repec.unibocconi.it/igier/igi/wp/2018/621.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jörg Oechssler & Andreas Roider & Patrick W. Schmitz, 2015. "Cooling Off in Negotiations: Does it Work?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 171(4), pages 565-588, December.
    2. Miguel A. Costa-Gomes & Georg Weizsäcker, 2008. "Stated Beliefs and Play in Normal-Form Games," Review of Economic Studies, Oxford University Press, vol. 75(3), pages 729-762.
    3. Giuseppe Attanasi & Pierpaolo Battigalli & Rosemarie Nagel, 2013. "Disclosure of Belief-Dependent Preferences in a Trust Game," Working Papers 506, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    4. Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, vol. 108(448), pages 726-735, May.
    5. Reuben, Ernesto & van Winden, Frans, 2008. "Social ties and coordination on negative reciprocity: The role of affect," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 34-53, February.
    6. Battigalli, Pierpaolo & Dufwenberg, Martin, 2009. "Dynamic psychological games," Journal of Economic Theory, Elsevier, vol. 144(1), pages 1-35, January.
    7. Pierpaolo Battigalli & Martin Dufwenberg & Alec Smith, 2015. "Frustration and Anger in Games," Working Papers 539, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    8. David Card & Gordon B. Dahl, 2011. "Family Violence and Football: The Effect of Unexpected Emotional Cues on Violent Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 126(1), pages 103-143.
    9. 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.
    10. Frank, Robert H, 1987. "If Homo Economicus Could Choose His Own Utility Function, Would He Want One with a Conscience?," American Economic Review, American Economic Association, vol. 77(4), pages 593-604, September.
    11. Persson, Emil, 2018. "Testing the impact of frustration and anger when responsibility is low," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 435-448.
    12. 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.
    13. Battigalli, Pierpaolo & Dufwenberg, Martin & Smith, Alec, 2019. "Frustration, aggression, and anger in leader-follower games," Games and Economic Behavior, Elsevier, vol. 117(C), pages 15-39.
    14. Alan Sanfey, 2009. "Expectations and social decision-making: biasing effects of prior knowledge on Ultimatum responses," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 8(1), pages 93-107, June.
    15. Oxoby, Robert J. & McLeish, Kendra N., 2004. "Sequential decision and strategy vector methods in ultimatum bargaining: evidence on the strength of other-regarding behavior," Economics Letters, Elsevier, vol. 84(3), pages 399-405, September.
    16. Boris van Leeuwen & Charles N. Noussair & Theo Offerman & Sigrid Suetens & Matthijs van Veelen & Jeroen van de Ven, 2018. "Predictably Angry—Facial Cues Provide a Credible Signal of Destructive Behavior," Management Science, INFORMS, vol. 64(7), pages 3352-3364, July.
    17. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 817-869.
    18. Steffen Andersen & Seda Ertac & Uri Gneezy & Moshe Hoffman & John A. List, 2011. "Stakes Matter in Ultimatum Games," American Economic Review, American Economic Association, vol. 101(7), pages 3427-3439, December.
    19. Iris Bohnet & Richard Zeckhauser, 2004. "Social Comparisons in Ultimatum Bargaining," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(3), pages 495-510, October.
    20. Munyo, Ignacio & Rossi, Martín A., 2013. "Frustration, euphoria, and violent crime," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 136-142.
    21. Solnick, Sara J, 2001. "Gender Differences in the Ultimatum Game," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 189-200, April.
    22. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    23. 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.
    24. Gale, John & Binmore, Kenneth G. & Samuelson, Larry, 1995. "Learning to be imperfect: The ultimatum game," Games and Economic Behavior, Elsevier, vol. 8(1), pages 56-90.
    25. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    26. Dan Lovallo & Colin Camerer, 1999. "Overconfidence and Excess Entry: An Experimental Approach," American Economic Review, American Economic Association, vol. 89(1), pages 306-318, March.
    27. Giuseppe Attanasi & Pierpaolo Battigalli & Elena Manzoni, 2016. "Incomplete-Information Models of Guilt Aversion in the Trust Game," Management Science, INFORMS, vol. 62(3), pages 648-667, March.
    28. Chen, Daniel L. & Schonger, Martin & Wickens, Chris, 2016. "oTree—An open-source platform for laboratory, online, and field experiments," Journal of Behavioral and Experimental Finance, Elsevier, vol. 9(C), pages 88-97.
    29. 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.
    30. Jordi Brandts & Gary Charness, 2011. "The strategy versus the direct-response method: a first survey of experimental comparisons," Experimental Economics, Springer;Economic Science Association, vol. 14(3), pages 375-398, September.
    31. Battigalli, Pierpaolo & Charness, Gary & Dufwenberg, Martin, 2013. "Deception: The role of guilt," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 227-232.
    32. Andrew Caplin & John Leahy, 2001. "Psychological Expected Utility Theory and Anticipatory Feelings," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 55-79.
    33. Ivanov, Asen, 2011. "Attitudes to ambiguity in one-shot normal-form games: An experimental study," Games and Economic Behavior, Elsevier, vol. 71(2), pages 366-394, March.
    34. Hoffman, Elizabeth & McCabe, Kevin A & Smith, Vernon L, 1996. "On Expectations and the Monetary Stakes in Ultimatum Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 25(3), pages 289-301.
    35. Blount, Sally & Bazerman, Max H., 1996. "The inconsistent evaluation of absolute versus comparative payoffs in labor supply and bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 30(2), pages 227-240, August.
    36. Drew Fudenberg & David K. Levine, 1998. "The Theory of Learning in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061945, December.
    37. Robert Slonim & Alvin E. Roth, 1998. "Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic," Econometrica, Econometric Society, vol. 66(3), pages 569-596, May.
    38. repec:feb:framed:0088 is not listed on IDEAS
    39. Sutter, Matthias & Kocher, Martin & Strau[ss], Sabine, 2003. "Bargaining under time pressure in an experimental ultimatum game," Economics Letters, Elsevier, vol. 81(3), pages 341-347, December.
    40. Cameron, Lisa A, 1999. "Raising the Stakes in the Ultimatum Game: Experimental Evidence from Indonesia," Economic Inquiry, Western Economic Association International, vol. 37(1), pages 47-59, January.
    41. Battigalli, Pierpaolo & Corrao, Roberto & Dufwenberg, Martin, 2019. "Incorporating belief-dependent motivation in games," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 185-218.
    42. Pillutla, Madan M. & Murnighan, J. Keith, 1996. "Unfairness, Anger, and Spite: Emotional Rejections of Ultimatum Offers," Organizational Behavior and Human Decision Processes, Elsevier, vol. 68(3), pages 208-224, December.
    43. Katarina Gospic & Erik Mohlin & Peter Fransson & Predrag Petrovic & Magnus Johannesson & Martin Ingvar, 2011. "Limbic Justice—Amygdala Involvement in Immediate Rejection in the Ultimatum Game," PLOS Biology, Public Library of Science, vol. 9(5), pages 1-8, May.
    44. Ronald Bosman & Frans van Winden, 2002. "Emotional Hazard in a Power-to-take Experiment," Economic Journal, Royal Economic Society, vol. 112(476), pages 147-169, January.
    45. Erte Xiao & Daniel Houser, 2005. "Emotion expression in human punishment behavior," Experimental 0504003, University Library of Munich, Germany, revised 18 May 2005.
    46. repec:dgr:uvatin:20040098 is not listed on IDEAS
    47. Jeannette Brosig & Joachim Weimann & Chun-Lei Yang, 2003. "The Hot Versus Cold Effect in a Simple Bargaining Experiment," Experimental Economics, Springer;Economic Science Association, vol. 6(1), pages 75-90, June.
    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. Pierpaolo Battigalli & Martin Dufwenberg, 2020. "Belief-Dependent Motivations and Psychological Game Theory," CESifo Working Paper Series 8285, CESifo.
    2. Kristina Czura & Anett John & Lisa Spantig, 2020. "Flexible Microcredit: Effects on Loan Repayment and Social Pressure," CESifo Working Paper Series 8322, CESifo.
    3. Pierpaolo Battigalli & Roberto Corrao & Martin Dufwenberg, 2019. "Incorporating Belief-Dependent Motivation in Games Abstract:Psychological game theory (PGT), introduced by Geanakoplos, Pearce & Stacchetti (1989) and significantly generalized by Battigalli & Dufwenb," Working Papers 642, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    4. Sibilla Di Guida & The Anh Han & Georg Kirchsteiger & Tom Lenaerts & Ioannis Zisis, 2021. "Repeated Interaction and Its Impact on Cooperation and Surplus Allocation—An Experimental Analysis," Games, MDPI, vol. 12(1), pages 1-19, March.
    5. Battigalli, Pierpaolo & Corrao, Roberto & Dufwenberg, Martin, 2019. "Incorporating belief-dependent motivation in games," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 185-218.
    6. Bigoni, Maria & Bortolotti, Stefania & Nas Özen, Efşan, 2021. "Economic polarization and antisocial behavior: An experiment," Games and Economic Behavior, Elsevier, vol. 126(C), pages 387-401.
    7. Attanasi, Giuseppe & Battigalli, Pierpaolo & Manzoni, Elena & Nagel, Rosemarie, 2019. "Belief-dependent preferences and reputation: Experimental analysis of a repeated trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 341-360.
    8. Battigalli, Pierpaolo & Dufwenberg, Martin & Smith, Alec, 2019. "Frustration, aggression, and anger in leader-follower games," Games and Economic Behavior, Elsevier, vol. 117(C), pages 15-39.
    9. Pierpaolo Battigalli & Martin Dufwenberg, 2019. "Psychological Game Theory," Working Papers 646, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    10. Elina Khachatryan & Christoph Buehren, 2020. "Letting off Steam! Experimental Evidence on Inappropriate Punishment," MAGKS Papers on Economics 202039, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    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. 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.
    2. Battigalli, Pierpaolo & Dufwenberg, Martin & Smith, Alec, 2019. "Frustration, aggression, and anger in leader-follower games," Games and Economic Behavior, Elsevier, vol. 117(C), pages 15-39.
    3. Pierpaolo Battigalli & Martin Dufwenberg, 2020. "Belief-Dependent Motivations and Psychological Game Theory," CESifo Working Paper Series 8285, CESifo.
    4. Bigoni, Maria & Bortolotti, Stefania & Nas Özen, Efşan, 2021. "Economic polarization and antisocial behavior: An experiment," Games and Economic Behavior, Elsevier, vol. 126(C), pages 387-401.
    5. Attanasi, Giuseppe & Battigalli, Pierpaolo & Manzoni, Elena & Nagel, Rosemarie, 2019. "Belief-dependent preferences and reputation: Experimental analysis of a repeated trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 341-360.
    6. Larney, Andrea & Rotella, Amanda & Barclay, Pat, 2019. "Stake size effects in ultimatum game and dictator game offers: A meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 151(C), pages 61-72.
    7. Jeannette Brosig-Koch & Thomas Riechmann & Joachim Weimann, 2017. "The dynamics of behavior in modified dictator games," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-18, April.
    8. Boris van Leeuwen & Charles N. Noussair & Theo Offerman & Sigrid Suetens & Matthijs van Veelen & Jeroen van de Ven, 2018. "Predictably Angry—Facial Cues Provide a Credible Signal of Destructive Behavior," Management Science, INFORMS, vol. 64(7), pages 3352-3364, July.
    9. Carlos Alós-Ferrer & Jaume García-Segarra & Alexander Ritschel, 2018. "The Big Robber Game," ECON - Working Papers 291, Department of Economics - University of Zurich.
    10. Sven Fischer, 2005. "Inequality Aversion in Ultimatum Games with Asymmetric Conflict Payoffs - A Theoretical and Experimental Analysis -," Papers on Strategic Interaction 2005-36, Max Planck Institute of Economics, Strategic Interaction Group.
    11. Emin Karagözoğlu & Ümit Barış Urhan, 2017. "The Effect of Stake Size in Experimental Bargaining and Distribution Games: A Survey," Group Decision and Negotiation, Springer, vol. 26(2), pages 285-325, March.
    12. Philipp E. Otto & Daniel Dittmer, 2019. "Simultaneous but independent ultimatum game: strategic elasticity or social motive dependency?," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(1), pages 61-80, March.
    13. Murnighan, J. Keith & Wang, Long, 2016. "The social world as an experimental game," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 80-94.
    14. David Cooper & E. Dutcher, 2011. "The dynamics of responder behavior in ultimatum games: a meta-study," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 519-546, November.
    15. Christian Korth, 2009. "Reciprocity—An Indirect Evolutionary Analysis," Lecture Notes in Economics and Mathematical Systems, in: Fairness in Bargaining and Markets, chapter 0, pages 35-55, Springer.
    16. Klempt Charlotte & Pull Kerstin & Stadler Manfred, 2019. "Asymmetric Information in Simple Bargaining Games: An Experimental Study," German Economic Review, De Gruyter, vol. 20(1), pages 29-51, February.
    17. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 3, pages 229-330, Elsevier.
    18. 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.
    19. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    20. Griffin, John & Nickerson, David & Wozniak, Abigail, 2012. "Racial differences in inequality aversion: Evidence from real world respondents in the ultimatum game," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 600-617.

    More about this item

    Keywords

    experiments; psychological games; ultimatum minigame; frustration; anger; non-equilibrium analysis. jel classification: c72; c91; d03.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

    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:igi:igierp:621. 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: http://www.igier.unibocconi.it/ .

    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: (email available below). General contact details of provider: http://www.igier.unibocconi.it/ .

    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.