Playing Fair: Rationality and Norm-guided Behavior in Games
There is robust experimental evidence that in the ultimatum game real players often prefer a fair allocation which seems to be in contrast to rational decision making. In this paper rational maximizing behavior as well as norm-guided fair behavior are two possible behavioral rules. It is argued that behavioral rules are adopted according to their expected success before the ultimatum game is played. Using the concept of behavioral equilibrium profiles it is shown that conditional to the information status the players may adopt the fair behavioral rule instead of maximizing. Furthermore, conditions are derived where maximizing and fair behavior are both parts of a behavioral equilibrium profile. Also the relation to the indirect evolutionary approach is discussed.
|Date of creation:||28 Aug 2002|
|Date of revision:|
|Contact details of provider:|| Postal: Carl-Zeiss-Strasse 3, 07743 JENA|
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.wiwiss.uni-jena.de/index.html
More information through EDIRC
|Order Information:|| Postal: If a paper is not downloadable, please contact the author(s) or the library of University of Jena, not the archive maintainer.|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- M. Rabin, 2001.
"Incorporating Fairness into Game Theory and Economics,"
Levine's Working Paper Archive
511, David K. Levine.
- Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
- Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
- Becker, Gary S, 1976. "Altruism, Egoism, and Genetic Fitness: Economics and Sociobiology," Journal of Economic Literature, American Economic Association, vol. 14(3), pages 817-26, September.
- Colin F. Camerer & Richard H. Thaler, 1995. "Anomalies: Ultimatums, Dictators and Manners," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 209-219, Spring.
- Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 58, pages 211.
- Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May.
- Werner Güth & Kerstin Pull, 2002.
"Will Equity Evolve? - An Indirect Evolutionary Approach,"
Papers on Strategic Interaction
2002-22, Max Planck Institute of Economics, Strategic Interaction Group.
- Guth, Werner & Pull, Kerstin, 2004. "Will equity evolve?: an indirect evolutionary approach," European Journal of Political Economy, Elsevier, vol. 20(1), pages 273-282, March.
- Falk, Armin & Fischbacher, Urs, 2006.
"A theory of reciprocity,"
Games and Economic Behavior,
Elsevier, vol. 54(2), pages 293-315, February.
- Armin Falk & Urs Fischbacher, . "A Theory of Reciprocity," IEW - Working Papers 006, Institute for Empirical Research in Economics - University of Zurich.
- Armin Falk & Urs Fischbacher, 2001. "A Theory of Reciprocity," CESifo Working Paper Series 457, CESifo Group Munich.
- Falk, Armin & Fischbacher, Urs, 2001. "A Theory of Reciprocity," CEPR Discussion Papers 3014, C.E.P.R. Discussion Papers.
- Guth, Werner, 1995. "On ultimatum bargaining experiments -- A personal review," Journal of Economic Behavior & Organization, Elsevier, vol. 27(3), pages 329-344, August.
- Markus Pasche, 2001. "Equilibrium Concepts for Boundedly Rational Behavior in Games," Working Paper Series B 2001-03, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultïät.
- Lipman, Barton L, 1991. "How to Decide How to Decide How to. . . : Modeling Limited Rationality," Econometrica, Econometric Society, vol. 59(4), pages 1105-25, July.
When requesting a correction, please mention this item's handle: RePEc:jen:jenavo:2002-02. 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: ()
If references are entirely missing, you can add them using this form.