What Do Bargainers' Preferences Look Like? Experiments with a Convex Ultimatum Game

S-Tier
Journal: American Economic Review
Year: 2003
Volume: 93
Issue: 3
Pages: 672-685

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The ultimatum game, by its all-or-nothing nature, makes it difficult to discern what kind of preferences may be generating choices. We explore a game that convexifies the decisions, allowing us a better look at the indifference curves of bargainers while maintaining the subgame-perfect equilibrium. We conclude that bargainers' preferences are convex and regular but not always monotonic. Money-maximization is the sole concern for about half of the subjects, while the other half reveal a preference for fairness. We also found, unexpectedly, the importance of risk aversion among money-maximizing proposers, which in turn generates significant bargaining power for fair-minded responders.

Technical Details

RePEc Handle
repec:aea:aecrev:v:93:y:2003:i:3:p:672-685
Journal Field
General
Author Count
3
Added to Database
2026-01-24