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Does Wealth Affect Fairness Considerations?

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  • Olivier Armantier

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Abstract

The influence of wealth on fairness considerations is analyzed in a series of ultimatum game experiments where proposers and receivers are given large and widely unequal initial endowments. Subjects initially demonstrate a concern for fairness. With time however, behavior becomes inconsistent with both fairness and subgame perfection. Clear evidence of learning is detected for both proposers and receivers in the estimation of a general reinforcement learning model. The results also indicate that, unlike their opponents, poor subjects i) are essentially influenced by their own experience rather than past best responses; ii) lose their ability to punish greedy bevhavior, and iii) learn to expect less.

Suggested Citation

  • Olivier Armantier, 2001. "Does Wealth Affect Fairness Considerations?," Department of Economics Working Papers 01-05, Stony Brook University, Department of Economics.
  • Handle: RePEc:nys:sunysb:01-05
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    File URL: http://www.stonybrook.edu/commcms/economics/research/papers/2001/01-05.pdf
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    Cited by:

    1. Antoni Bosch & Joaquim Silvestre, 2003. "Do the Wealthy Risk More Money? An Experimental Comparison," Working Papers 10, Barcelona Graduate School of Economics.

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