IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_9280.html
   My bibliography  Save this paper

Ultimatum Game Behavior in a Social-Preferences Vacuum Chamber

Author

Listed:
  • Volker Benndorf
  • Thomas Große Brinkhaus
  • Ferdinand von Siemens

Abstract

We study strategic interaction in an experimental social-preferences vacuum chamber. We mute social preferences by letting participants knowingly interact with computers. Our new design allows for indirect strategic interaction: there are several waves in which computer players inherit the behavior of human players from the previous wave. We apply our method to investigate trembling-hand perfection in a normal-form version of the ultimatum game. We find that behavior remains far off from a trembling-hand perfect equilibrium under selfish preferences even towards the end of our experiment. The likely reasons for our findings are strategic uncertainty and incomplete learning.

Suggested Citation

  • Volker Benndorf & Thomas Große Brinkhaus & Ferdinand von Siemens, 2021. "Ultimatum Game Behavior in a Social-Preferences Vacuum Chamber," CESifo Working Paper Series 9280, CESifo.
    • Handle: RePEc:ces:ceswps:_9280
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9280.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guth, Werner & Tietz, Reinhard, 1990. "Ultimatum bargaining behavior : A survey and comparison of experimental results," Journal of Economic Psychology, Elsevier, vol. 11(3), pages 417-449, September.
    2. Ferraro, Paul J. & Rondeau, Daniel & Poe, Gregory L., 2003. "Detecting other-regarding behavior with virtual players," Journal of Economic Behavior & Organization, Elsevier, vol. 51(1), pages 99-109, May.
    3. Cooper, Russell & DeJong, Douglas V. & Forsythe, Robert & Ross, Thomas W., 1996. "Cooperation without Reputation: Experimental Evidence from Prisoner's Dilemma Games," Games and Economic Behavior, Elsevier, vol. 12(2), pages 187-218, February.
    4. Uri Gneezy & Jan Potters, 1997. "An Experiment on Risk Taking and Evaluation Periods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 631-645.
    5. David Cooper & Nick Feltovich & Alvin Roth & Rami Zwick, 2003. "Relative versus Absolute Speed of Adjustment in Strategic Environments: Responder Behavior in Ultimatum Games," Experimental Economics, Springer;Economic Science Association, vol. 6(2), pages 181-207, October.
    6. Ben Greiner, 2015. "Subject pool recruitment procedures: organizing experiments with ORSEE," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 114-125, July.
    7. Jörgen W. Weibull, 2004. "Testing Game Theory," Palgrave Macmillan Books, in: Steffen Huck (ed.), Advances in Understanding Strategic Behaviour, chapter 6, pages 85-104, Palgrave Macmillan.
    8. Ferraro Paul J & Vossler Christian A, 2010. "The Source and Significance of Confusion in Public Goods Experiments," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-42, July.
    9. Daniel Houser & Robert Kurzban, 2002. "Revisiting Kindness and Confusion in Public Goods Experiments," American Economic Review, American Economic Association, vol. 92(4), pages 1062-1069, September.
    10. John List & Todd Cherry, 2000. "Learning to Accept in Ultimatum Games: Evidence from an Experimental Design that Generates Low Offers," Experimental Economics, Springer;Economic Science Association, vol. 3(1), pages 11-29, June.
    11. David Cooper & E. Dutcher, 2011. "The dynamics of responder behavior in ultimatum games: a meta-study," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 519-546, November.
    12. Roth, Alvin E. & Erev, Ido, 1995. "Learning in extensive-form games: Experimental data and simple dynamic models in the intermediate term," Games and Economic Behavior, Elsevier, vol. 8(1), pages 164-212.
    13. Harrison, Glenn W & McCabe, Kevin A, 1996. "Expectations and Fairness in a Simple Bargaining Experiment," International Journal of Game Theory, Springer;Game Theory Society, vol. 25(3), pages 303-327.
    14. Eyal Winter & Shmuel Zamir, 2005. "An Experiment With Ultimatum Bargaining In A Changing Environment," The Japanese Economic Review, Japanese Economic Association, vol. 56(3), pages 363-385, September.
    15. Johnson, Eric J. & Camerer, Colin & Sen, Sankar & Rymon, Talia, 2002. "Detecting Failures of Backward Induction: Monitoring Information Search in Sequential Bargaining," Journal of Economic Theory, Elsevier, vol. 104(1), pages 16-47, May.
    16. Gale, John & Binmore, Kenneth G. & Samuelson, Larry, 1995. "Learning to be imperfect: The ultimatum game," Games and Economic Behavior, Elsevier, vol. 8(1), pages 56-90.
    17. Michihiro Kandori, 1992. "Social Norms and Community Enforcement," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(1), pages 63-80.
    18. Smith, Vernon L, 1976. "Experimental Economics: Induced Value Theory," American Economic Review, American Economic Association, vol. 66(2), pages 274-279, May.
    19. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Klockmann, Victor & von Schenk, Alicia & Villeval, Marie Claire, 2022. "Artificial intelligence, ethics, and intergenerational responsibility," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 284-317.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Güth, Werner & Kocher, Martin G., 2014. "More than thirty years of ultimatum bargaining experiments: Motives, variations, and a survey of the recent literature," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 396-409.
    2. March, Christoph, 2019. "The behavioral economics of artificial intelligence: Lessons from experiments with computer players," BERG Working Paper Series 154, Bamberg University, Bamberg Economic Research Group.
    3. Takafumi Yamakawa & Yoshitaka Okano & Tatsuyoshi Saijo, 2016. "Detecting motives for cooperation in public goods experiments," Experimental Economics, Springer;Economic Science Association, vol. 19(2), pages 500-512, June.
    4. March, Christoph, 2021. "Strategic interactions between humans and artificial intelligence: Lessons from experiments with computer players," Journal of Economic Psychology, Elsevier, vol. 87(C).
    5. David Cooper & E. Dutcher, 2011. "The dynamics of responder behavior in ultimatum games: a meta-study," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 519-546, November.
    6. van Damme, Eric & Binmore, Kenneth G. & Roth, Alvin E. & Samuelson, Larry & Winter, Eyal & Bolton, Gary E. & Ockenfels, Axel & Dufwenberg, Martin & Kirchsteiger, Georg & Gneezy, Uri & Kocher, Martin G, 2014. "How Werner Güth's ultimatum game shaped our understanding of social behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 292-318.
    7. Brosig-Koch, Jeannette & Griebenow, Malte & Kifmann, Mathias & Then, Franziska, 2022. "Rewards for information provision in patient referrals: A theoretical model and an experimental test," Journal of Health Economics, Elsevier, vol. 86(C).
    8. repec:hal:pseose:halshs-01261036 is not listed on IDEAS
    9. Cox, Caleb A. & Stoddard, Brock, 2018. "Strategic thinking in public goods games with teams," Journal of Public Economics, Elsevier, vol. 161(C), pages 31-43.
    10. Ralph-C. Bayer & Elke Renner & Rupert Sausgruber, 2013. "Confusion and learning in the voluntary contributions game," Experimental Economics, Springer;Economic Science Association, vol. 16(4), pages 478-496, December.
    11. Nobuyuki Hanaki & Nicolas Jacquemet & Stéphane Luchini & Adam Zylbersztejn, 2016. "Cognitive ability and the effect of strategic uncertainty," Theory and Decision, Springer, vol. 81(1), pages 101-121, June.
    12. Qi, Tianxiao & Xu, Bin & Wu, Jinshan & Vriend, Nicolaas J., 2022. "On the Stochasticity of Ultimatum Games," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 227-254.
    13. David Cooper & Nick Feltovich & Alvin Roth & Rami Zwick, 2003. "Relative versus Absolute Speed of Adjustment in Strategic Environments: Responder Behavior in Ultimatum Games," Experimental Economics, Springer;Economic Science Association, vol. 6(2), pages 181-207, October.
    14. Nick Feltovich & John Duffy, 1999. "Does observation of others affect learning in strategic environments? An experimental study," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(1), pages 131-152.
    15. Peter Katuščák & Tomáš Miklánek, 2023. "What drives conditional cooperation in public good games?," Experimental Economics, Springer;Economic Science Association, vol. 26(2), pages 435-467, April.
    16. Brenner, Thomas & Vriend, Nicolaas J., 2006. "On the behavior of proposers in ultimatum games," Journal of Economic Behavior & Organization, Elsevier, vol. 61(4), pages 617-631, December.
    17. García-Pola, Bernardo & Iriberri, Nagore & Kovářík, Jaromír, 2020. "Non-equilibrium play in centipede games," Games and Economic Behavior, Elsevier, vol. 120(C), pages 391-433.
    18. Navarro, Noemí & Veszteg, Róbert F., 2020. "On the empirical validity of axioms in unstructured bargaining," Games and Economic Behavior, Elsevier, vol. 121(C), pages 117-145.
    19. Gächter, Simon & Kölle, Felix & Quercia, Simone, 2022. "Preferences and perceptions in Provision and Maintenance public goods," Games and Economic Behavior, Elsevier, vol. 135(C), pages 338-355.
    20. Halevy, Yoram & Peters, Michael, 2007. "Other Regarding Preferences: Outcomes, Intentions, or Interdependence," Microeconomics.ca working papers peters-07-03-31-11-46-48, Vancouver School of Economics, revised 24 Jun 2009.
    21. Jinkwon Lee, 2007. "Repetition And Financial Incentives In Economics Experiments," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 628-681, July.

    More about this item

    Keywords

    social preferences; induced-value theory; learning; ultimatum game; strategic interaction;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_9280. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.