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Interregional diversity of fairness concerns - An online ultimatum experiment

  • Sebastian J. Goerg

    (BonnEconLab, University of Bonn)

  • Werner Güth

    (Max Planck Institute of Economics Jena, Strategic Interaction Unit)

  • Gari Walkowitz

    (BonnEconLab, University of Bonn)

  • Torsten Weiland

    ()

    (Max Planck Institute of Economics Jena, Strategic Interaction Unit)

Does geographic distance or the perceived social distance between subjects significantly affect proposer and responder behavior in ultimatum bargaining? To answer this question, subjects play a one-shot ultimatum game with three players (proposer, responder, and a passive dummy player) and asymmetric information (only the proposer knows what can be distributed). Treatments differ in their geographic scope by involving either one or three different locations in Germany. Observed behavior reflects the robust stylized facts of this class of ultimatum experiments and can be adequately explained by other-regarding preferences. While responder behavior does not condition on co-players' location of residence, self-interest of proposers varies significantly with the latter. Altogether, we do not detect strong discrimination based on geographic distance.

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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-016.

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Date of creation: 16 May 2007
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Handle: RePEc:jrp:jrpwrp:2007-016
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  1. Georg Kirchsteiger & Ernst Fehr & Arno Riedl, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," ULB Institutional Repository 2013/5927, ULB -- Universite Libre de Bruxelles.
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  9. 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.
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  13. Carsten Schmidt & Matthias Sutter & Werner Guth, 2002. "Bargaining outside the lab - a newspaper experiment of a three person-ultimatum game," Artefactual Field Experiments 00050, The Field Experiments Website.
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  16. Mitzkewitz, Michael & Nagel, Rosemarie, 1993. "Experimental Results on Ultimatum Games with Incomplete Information," International Journal of Game Theory, Springer, vol. 22(2), pages 171-98.
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