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The Relevance of Relative Position in Ultimatum Games

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  • Miller Moya, Luis Miguel
  • Ubeda Molla, Paloma

Abstract

This paper investigates the effect of focal points and initial relative position in the outcome of a bargaining process. We conduct two on-line experiments. In the first experiment we attempt to replicate Güth, Huck and Müller's (2001) results about the relevance of equal splits. In our second experiment, we recover the choices of participants in forty mini-ultimatum games. This design allows us to test whether the equal split or any other distribution or set of distributions are salient. Our data provide no support for a focal-point explanation but we find support for an explanation based on relative position. Our results confirm that there is a norm against hyper-fair offers. Proposers are expected to behave selfishly when the unselfish distribution leads to a change in the initial relative position.

Suggested Citation

  • Miller Moya, Luis Miguel & Ubeda Molla, Paloma, 2014. "The Relevance of Relative Position in Ultimatum Games," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Handle: RePEc:ehu:dfaeii:12717
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    References listed on IDEAS

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    3. Guth, Werner & Huck, Steffen & Muller, Wieland, 2001. "The Relevance of Equal Splits in Ultimatum Games," Games and Economic Behavior, Elsevier, vol. 37(1), pages 161-169, October.
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    5. Abigail Barr & Chris Wallace & Jean Ensminger & Joseph Henrich & Clark Barrette & Alexander Bolyanatz & Juan Camilo Cardenas & Michael Gurven & Edwins Gwako & Carolyn Lesorogol & Frank Marlowe & Richa, 2009. "Homo Æqualis: A Cross-Society Experimental Analysis of Three Bargaining Games," CSAE Working Paper Series 2009-02, Centre for the Study of African Economies, University of Oxford.
    6. Jordi Brandts & Enrique Fatas & Francisco Lagos, 2005. "Relative Position, Prices of Sacrifice and Reciprocity: An Experimental Study Using Individual Decisions," Working Papers 256, Barcelona School of Economics.
    7. Gary E Bolton & Jordi Brandts & Axel Ockenfels, 2005. "Fair Procedures: Evidence from Games Involving Lotteries," Economic Journal, Royal Economic Society, vol. 115(506), pages 1054-1076, October.
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    1. The Relevance of Relative Position in Ultimatum Games
      by Alessandro Cerboni in Knowledge Team on 2014-08-10 02:15:20

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    Keywords

    bargaining; focal points; relative position;
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