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The Role of Suggestions and Tips in Distorting a Third Party’s Decision

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Abstract

This paper experimentally investigates the impact of suggestive messages and tipping on a third party’s judgment. The experimental design uses a model with three players, wherein two players (A and B) create a joint project, and the third player (C) decides how to divide the project’s earnings between the first two players. In two treatments, player B has an opportunity to influence player C’s decision via a numeric message or an ex-post tip. The main finding of this paper is that giving player B the option to suggest a specific amount to the allocator does not increase his share. In contrast, when player C knows that player B can send him a tip, the share awarded to player B increases.

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  • Parra, Daniel, 2020. "The Role of Suggestions and Tips in Distorting a Third Party’s Decision," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(2), pages 1-21.
    • Handle: RePEc:zbw:espost:218883
    DOI: 10.3390/g11020023
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    Cited by:

    1. Jin Zheng & Arthur Schram & Gönül Doğan, 2021. "Friend or foe? Social ties in bribery and corruption," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 854-882, September.

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