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Cognitive ability and human behavior in experimental ultimatum games

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  • Kawamura, Tetsuya
  • Ogawa, Kazuhito

Abstract

Recent researches have shed light on the effect of cognitive ability on economic decision-making. By measuring cognitive ability applying Raven's progressive matrix test, we obtain two significant results that this effect affects decision-making in two types of experimental ultimatum games. First, the higher the cognitive ability, the larger the amount a sender offers when the offer is smaller than or equal to the half split. Second, the higher the responders’ cognitive ability, the smaller the offer they accept, when they accept it or not with the strategy method. This study not only finds new factors that affect decision-making in experimental ultimatum games, but also provides more evidences that cognitive ability influences economic decision-making.

Suggested Citation

  • Kawamura, Tetsuya & Ogawa, Kazuhito, 2019. "Cognitive ability and human behavior in experimental ultimatum games," Research in Economics, Elsevier, vol. 73(1), pages 97-106.
    • Handle: RePEc:eee:reecon:v:73:y:2019:i:1:p:97-106
    DOI: 10.1016/j.rie.2019.01.005
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    Cited by:

    1. Leite, Rodrigo de Oliveira & Cardoso, Ricardo Lopes & Jelihovschi, Ana Paula Gomes & Civitarese, Jamil, 2020. "Job market compensation for cognitive reflection ability," Research in Economics, Elsevier, vol. 74(1), pages 87-93.
    2. Peng, Hui-Chun, 2020. "Effect of cognitive ability on matching and rebate subsidies," Research in Economics, Elsevier, vol. 74(1), pages 19-25.
    3. Tetsuya Kawamura & Tiffany Tsz Kwan Tse, 2022. "Intelligence promotes cooperation in long-term interaction: experimental evidence in infinitely repeated public goods games," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(4), pages 927-946, October.
    4. Ogawa, Kazuhito & Kawamura, Tetsuya & Matsushita, Keiichiro, 2020. "Effects of cognitive ability and age on giving in dictator game experiments," Research in Economics, Elsevier, vol. 74(4), pages 323-335.

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    More about this item

    Keywords

    Ultimatum game; Cognitive ability; Strategy method; Adult participants;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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