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Raising the Stakes in the Ultimatum Game: Experimental Evidence From Indonesia

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  • Lisa Cameron

    (Princeton University)

Abstract

Implementing the ultimatum game experimentally in Indonesia makes it possible to raise the stakes to three times the monthly expenditure of the average participant. Contrary to predictions in the literature, the results show no evidence of approaching the sub-game perfect, selfish outcomes. Responders seem to be just as willing to reject a given percentage offer at high stakes as at low stakes, and Proposers make slightly less selfish offers as the stakes increase.

Suggested Citation

  • Lisa Cameron, 1995. "Raising the Stakes in the Ultimatum Game: Experimental Evidence From Indonesia," Working Papers 724, Princeton University, Department of Economics, Industrial Relations Section..
  • Handle: RePEc:pri:indrel:345
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    Keywords

    experimental economics; ultimatum game; large stakes;

    JEL classification:

    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925

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