Revealing Preferences for Fairness in Ultimatum Bargaining Academic Article

abstract

• The ultimatum game has been the primary tool for studying bar-gaining behavior in recent years. However, not enough information is gathered in the ultimatum game to get a clear picture of responders utility functions. We analyze a convex ultimatum game in which responders can shrink an offer as well as to accept or reject it. This allows us to observe enough about responders preferences to estimate utility functions. We use data collected from convex ultimatum games to successfully predict behavior in standard games. Rejections can be rationalized with neo-classical preferences over own- and other-payoff that are convex, nonmonotonic, and regular.

authors

• Castillo, Marco
• Petrie, Ragan

published proceedings

• Korean Economic Review

author list (cited authors)

• James Andreoni, .., Marco Castillo, .., & Ragan Petrie.

publication date

• January 2009

publisher

• Korean Economic Association  Publisher

published in

• Korean Economic Review  Journal

keywords

• Bargaining Behavior
• Revealing Preferences
• Ultimatum Game

start page

• 35

end page

• 63

volume

• 25

issue

• 1

URL

• http://www.kereview.or.kr/modules/repec/backIssue_view.html?vol=25&num=1&p=2&no=5