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Country Differences in Ultimatum Wage Bargaining with a Real Task: Evidence from Greece, Spain and the UK

Author

Listed:
  • Aurora García-Gallego

    (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Nikolaos Georgantzís

    (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Ainhoa Jaramillo-Gutiérrez

    (LEE-Department of Economics, Universitat Jaume I-Castellón, ERICES-University of Valencia, Spain)

Abstract

We study ultimatum bargaining over the wage that should be paid in order to have a subject perform a given real task. Our results are obtained from experiments run in Greece, Spain and the UK. We find significantly higher wage offers and lower acceptance probabilities in the UK than in the other two countries. Interestingly, the combination of these two effects leads to higher wages in the British pool, without reducing market efficiency as compared to Spain and Greece. Country differences in both employer and employee behavior have a clear gender component.

Suggested Citation

  • Aurora García-Gallego & Nikolaos Georgantzís & Ainhoa Jaramillo-Gutiérrez, 2013. "Country Differences in Ultimatum Wage Bargaining with a Real Task: Evidence from Greece, Spain and the UK," Working Papers 2013/13, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2013/13
    as

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    References listed on IDEAS

    as
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    1. Country Differences in Ultimatum Wage Bargaining with a Real Task: Evidence from Greece, Spain and the UK
      by maximorossi in NEP-LTV blog on 2013-10-15 18:41:39

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    More about this item

    Keywords

    ultimatum bargaining; real task; country differences;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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