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Response Time under Monetary Incentives: the Ultimatum Game

Author

Listed:
  • Pablo Branas-Garza

    (Departamento de Teoria Economica, Universidad de Granada)

  • Ana Leon-Mejia

    (IESA-CSIC)

  • Luis M. Miller

    (IESA-CSIC and Max Planck Institute of Economics,)

Abstract

This paper studies the response times of experimental subjects playing the Ultimatum game in a laboratory setting using monetary incentives. We find that proposals are not significantly correlated with response time, whereas responders' behavior is positively and significantly correlated. Hence, consistent with Rubisntein (forthcoming) we find that response times may capture relevant cognitive processes. However, the use of monetary incentives causes a reversal of his findings. These results have implications for the information about cognitive mechanisms that can be obtained from response times.

Suggested Citation

  • Pablo Branas-Garza & Ana Leon-Mejia & Luis M. Miller, 2007. "Response Time under Monetary Incentives: the Ultimatum Game," Jena Economics Research Papers 2007-070, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2007-070
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Brice Corgnet & Antonio M. Espin & Roberto Hernán-González, 2015. "The cognitive basis of social behavior : cognitive reflection overrides antisocial but not always prosocial motives," Post-Print hal-02311954, HAL.
    2. Astrid Matthey & Tobias Regner, 2011. "Do I Really Want to Know? A Cognitive Dissonance-Based Explanation of Other-Regarding Behavior," Games, MDPI, vol. 2(1), pages 1-22, February.
    3. Ubeda, Paloma, 2014. "The consistency of fairness rules: An experimental study," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 88-100.
    4. Pablo Brañas-Garza, 2008. "Expected Behavior in the Dictator Game," ThE Papers 08/12, Department of Economic Theory and Economic History of the University of Granada..
    5. Hannes Lang & Gregory DeAngelo & Michelle Bongard, 2018. "Theory of Mind and General Intelligence in Dictator and Ultimatum Games," Games, MDPI, vol. 9(2), pages 1-22, March.
    6. Recalde, María P. & Riedl, Arno & Vesterlund, Lise, 2018. "Error-prone inference from response time: The case of intuitive generosity in public-good games," Journal of Public Economics, Elsevier, vol. 160(C), pages 132-147.
    7. Piovesan, Marco & Wengström, Erik, 2009. "Fast or fair? A study of response times," Economics Letters, Elsevier, vol. 105(2), pages 193-196, November.
    8. Sean Duffy & Tyson Hartwig & John Smith, 2014. "Costly and discrete communication: an experimental investigation," Theory and Decision, Springer, vol. 76(3), pages 395-417, March.
    9. Shu-Heng Chen & Ye-Rong Du & Lee-Xieng Yang, 2014. "Cognitive capacity and cognitive hierarchy: a study based on beauty contest experiments," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(1), pages 69-105, April.
    10. Duffy, Sean & Smith, John, 2014. "Cognitive load in the multi-player prisoner's dilemma game: Are there brains in games?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 51(C), pages 47-56.
    11. Duffy, Sean & Smith, John, 2011. "Cognitive load in the multi-player prisoner's dilemma game," MPRA Paper 30856, University Library of Munich, Germany.
    12. Krawczyk, Michał & Sylwestrzak, Marta, 2018. "Exploring the role of deliberation time in non-selfish behavior: The double response method," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 72(C), pages 121-134.
    13. Nguyen, Cuong Viet, 2022. "Money vs Score: Evidences of payoff stakes in the dictator and ultimatum games," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 99(C).
    14. Ariel Rubenstein, 2013. "Response time and decision making: An experimental study," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 8(5), pages 540-551, September.
    15. Alexander W. Cappelen & Ulrik H. Nielsen & Bertil Tungodden & Jean-Robert Tyran & Erik Wengström, 2016. "Fairness is intuitive," Experimental Economics, Springer;Economic Science Association, vol. 19(4), pages 727-740, December.
    16. Anders Poulsen & Axel Sonntag, 2019. "Focality is Intuitive - Experimental Evidence on the Effects of Time Pressure in Coordination Games," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 19-01, School of Economics, University of East Anglia, Norwich, UK..
    17. Rubinstein, Ariel, 2012. "Response Time and Decision Making: A “Free” Experimental Study," Foerder Institute for Economic Research Working Papers 275782, Tel-Aviv University > Foerder Institute for Economic Research.
    18. Chen, Chia-Ching & Chiu, I-Ming & Smith, John & Yamada, Tetsuji, 2013. "Too smart to be selfish? Measures of cognitive ability, social preferences, and consistency," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 112-122.
    19. Hubert Janos Kiss & Ismael Rodriguez-Lara & Alfonso Rosa-Garcia, 2019. "Does response time predict withdrawal decisions? Lessons from a bank-run experiment," Review of Behavioral Finance, Emerald Group Publishing Limited, vol. 12(3), pages 200-222, November.
    20. repec:cup:judgdm:v:8:y:2013:i:5:p:540-551 is not listed on IDEAS
    21. Lotito, Gianna & Migheli, Matteo & Ortona, Guido, 2019. "Some Experimental Evidence on Type Stability and Response Times," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201919, University of Turin.
    22. Herzenstein, Michal & Dholakia, Utpal M. & Sonenshein, Scott, 2020. "How the number of options affects prosocial choice," International Journal of Research in Marketing, Elsevier, vol. 37(2), pages 356-370.

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    More about this item

    Keywords

    Monetary incentives; Ultimatum game; response time;
    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

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