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When Culture does not matter: Experimental Evidence from Coalition Formation Ultimatum Games in Austria and Japan

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  • Akira Okada

    (Kyoto University)

  • Arno Riedl

    (CREED, University of Amsterdam)

Abstract

This paper reports the results of a cross-country comparison between Austria andJapan for an experimental 3-personcoalition formation ultimatum game. The experimental design allows thecomparison with respect to three decisions. (i)The coalition decision, (ii) proposers' demand behavior in 2- and 3-personultimatum subgames, and (iii) theresponders' behavior in these subgames. In contrast to other cross-culturalstudies in experimental bargainingenvironments we can not find any (significant) difference in behavior betweensubjects in Austria and Japan. Weattribute the behavioral similarities mainly to a subtle focal point andresponder competition effect, which wipe outpossible cultural differences. Our conclusion is that even in environments -like bargaining - where cultural differencesmay play a prominent role the show-up of these differences is highly sensitiveto the exact context in which people act.

Suggested Citation

  • Akira Okada & Arno Riedl, 1999. "When Culture does not matter: Experimental Evidence from Coalition Formation Ultimatum Games in Austria and Japan," Tinbergen Institute Discussion Papers 99-043/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19990043
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    1. Timothy Cason & Tatsuyoshi Saijo & Takehiko Yamato, 2002. "Voluntary Participation and Spite in Public Good Provision Experiments: An International Comparison," Experimental Economics, Springer;Economic Science Association, vol. 5(2), pages 133-153, October.
    2. Okada, Akira & Riedl, Arno, 2005. "Inefficiency and social exclusion in a coalition formation game: experimental evidence," Games and Economic Behavior, Elsevier, vol. 50(2), pages 278-311, February.
    3. Okada, Akiro & Riedl, Arno, 1999. "Inefficiency and Social Exclusion in a Coalition Formation Game," Economics Series 64, Institute for Advanced Studies.
    4. Lensberg, T. & van der Heijden, E.C.M., 1998. "A cross-cultural study of reciprocity, trust and altruism in a gift exchange experiment," Discussion Paper 1998-77, Tilburg University, Center for Economic Research.
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    Cited by:

    1. Timothy Cason & Tatsuyoshi Saijo & Takehiko Yamato, 2002. "Voluntary Participation and Spite in Public Good Provision Experiments: An International Comparison," Experimental Economics, Springer;Economic Science Association, vol. 5(2), pages 133-153, October.
    2. Kenju Akai & Robert J. Netzer, 2009. "Trust and Reciprocity among International Groups: Experimental Evidence from Austria and Japan," ISER Discussion Paper 0737r, Institute of Social and Economic Research, Osaka University, revised Aug 2010.
    3. Konow, James & Saijo, Tatsuyoshi & Akai, Kenju, 2016. "Equity versus Equality," MPRA Paper 75376, University Library of Munich, Germany.
    4. Heike Hennig-Schmidt & Gari Walkowitz, 2017. "Moral Entitlements and Aspiration Formation in Asymmetric Bargaining: Experimental Evidence from Germany and China," Games, MDPI, vol. 8(4), pages 1-25, October.
    5. Okada, Akira & Riedl, Arno, 2005. "Inefficiency and social exclusion in a coalition formation game: experimental evidence," Games and Economic Behavior, Elsevier, vol. 50(2), pages 278-311, February.
    6. Akai, Kenju & Netzer, Robert Jiro, 2012. "Trust and reciprocity among international groups: Experimental evidence from Austria and Japan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 266-276.
    7. Olga Bogach & Andreas Leibbrandt, 2011. "An Experimental Study on the Relevance and Scope of Culture as a Focal Point," Working Papers 201104, University of Hawaii at Manoa, Department of Economics.
    8. James Konow & Tatsuyoshi Saijo & Kenju Akai, 2008. "Morals and Mores? Experimental Evidence on Equity and Equality from the US and Japan," Levine's Working Paper Archive 122247000000002055, David K. Levine.
    9. Calvin Blackwell & Michael McKee, 2010. "Is There a Bias Toward Contributing to Local Public Goods? Cultural Effects," Forum for Social Economics, Taylor & Francis Journals, vol. 39(3), pages 243-257, January.
    10. Okada, Akiro & Riedl, Arno, 1999. "Inefficiency and Social Exclusion in a Coalition Formation Game," Economics Series 64, Institute for Advanced Studies.
    11. Chen, Kang & Tang, Fang-Fang, 2009. "Cultural differences between Tibetans and ethnic Han Chinese in ultimatum bargaining experiments," European Journal of Political Economy, Elsevier, vol. 25(1), pages 78-84, March.

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