Hennig-Schmidt, Heike, Irlenbusch, Bernd, Rilke, Rainer Michael ORCID: 0000-0001-8901-860X and Walkowitz, Gari (2018). Asymmetric outside options in ultimatum bargaining: a systematic analysis. Int. J. Game Theory, 47 (1). S. 301 - 330. HEIDELBERG: SPRINGER HEIDELBERG. ISSN 1432-1270

Full text not available from this repository.

Abstract

We set up a laboratory experiment to investigate systematically how varying the magnitude of outside options-the payoffs that materialize in case of a bargaining breakdown-of proposers and responders influences players' demands and game outcomes (rejection rates, payoffs, efficiency) in ultimatum bargaining. We find that proposers as well as responders gradually increase their demands when their respective outside option increases. Rejections become more likely when the asymmetry in the players' outside options is large. Generally, the predominance of the equal split decreases with increasing outside options. From a theoretical benchmark perspective we find a low predictive power of equilibria based on self-regarding preferences or inequity aversion. However, proposers and responders seem to be guided by the equity principle (Selten, The equity principle in economic behavior. Decision Theory, Social Ethics, Issues in Social Choice. Gottinger, Hans-Werner and Leinfellner, Werner, pp 269-281, 1978), while they apply equity rules inconsistently and self-servingly.

Item Type: Journal Article
Creators:
CreatorsEmailORCIDORCID Put Code
Hennig-Schmidt, HeikeUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
Irlenbusch, BerndUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
Rilke, Rainer MichaelUNSPECIFIEDorcid.org/0000-0001-8901-860XUNSPECIFIED
Walkowitz, GariUNSPECIFIEDUNSPECIFIEDUNSPECIFIED
URN: urn:nbn:de:hbz:38-195025
DOI: 10.1007/s00182-017-0588-4
Journal or Publication Title: Int. J. Game Theory
Volume: 47
Number: 1
Page Range: S. 301 - 330
Date: 2018
Publisher: SPRINGER HEIDELBERG
Place of Publication: HEIDELBERG
ISSN: 1432-1270
Language: English
Faculty: Unspecified
Divisions: Unspecified
Subjects: no entry
Uncontrolled Keywords:
KeywordsLanguage
OTHER-REGARDING PREFERENCES; GAME EXPERIMENTS; FAIRNESS; INFORMATION; BEHAVIOR; PAYOFFS; CLAIMS; POWERMultiple languages
Economics; Mathematics, Interdisciplinary Applications; Social Sciences, Mathematical Methods; Statistics & ProbabilityMultiple languages
Refereed: Yes
URI: http://kups.ub.uni-koeln.de/id/eprint/19502

Downloads

Downloads per month over past year

Altmetric

Export

Actions (login required)

View Item View Item