Ultimatum Decision-Making: A Test of Reciprocal Kindness
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- David L. Dickinson Ph.D., Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: While fairness is often mentioned as a determinant of ultimatum bargaining behavior,
few data sets are available that can test theories that incorporate fairness considerations. This paper tests the reciprocal kindness theory in Rabin (1993) as an application to the one-period ultimatum bargaining game. We report on data from 100 ultimatum games that vary the financial stakes of the game from $1 to $15. Responder behavior is strongly in support of the
kindness theory and proposer behavior weakly in support of it. Offer percentages and past offers
influence behavior the most, whereas the size of the pie has a marginally significant effect on
offer percentages. The data is more in support of reciprocal kindness than alternative theories of
equal-split or learning behavior, although the data also weakly support a minimum percentage
threshold hypothesis. As a whole, our results together with existing studies suggest that, for
smaller stakes games, fairness considerations dominate monetary considerations. This has
implications for more complicated naturally occurring bargaining environments in which the
financial stakes can vary widely.
Ultimatum Decision-Making: A Test of Reciprocal Kindness
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Additional Information
- Publication
- Dickinson, David L. (2000) “Ultimatum Decision-Making: A Test of Reciprocal Kindness.” Theory and Decision, 48(2): 151-177. Published by Springer Verlag. The original publication is available at www.springerlink.com (ISSN: 0040-5833)
- Language: English
- Date: 2000
- Keywords
- Fairness, Ultimatum Bargaining, Reciprocity, Experiments