Theory and experiment: What are the questions?

Smith, Vernon L. “Theory and experiment: What are the questions?." Journal of Economic Behavior & Organization 73.1 (2010): 3-15. [PDF];[my notes]


Smith 提到了 OPM (other person’s money) 問題,可以用以下的方式解決

We could give the constant positive sum ultimatum game economic content as follows: Each player provides $M of his own money. Some procedure is used for pairing the subjects, and determining who is to be Player 1 and who Player 2; this procedure in some variations might incorporate an earned and/or investment feature. It is understood that their pairing has economic significance in the sense that there are synergistic gains from the interaction equal to some fixed sum y > 2M. The experimenter provides only the surplus above 2M which represents the gains from specialization and exchange, as this is the one reliable source of a “free lunch” that converts economic systems into non-zero sum games. Hence, the total to be shared under the property right rules of the game is 2M + y, making it feasible for each to receive a share of the jointly created net gain above their pooled initial contribution, 2M.

Effects of facial trustworthiness and gender on decision making in the Ultimatum Game

Wu, Yujia; Gao, Li; Wan, Yan; Wang, Fang; Xu, Sihua; Yang, Zijing; Rao, Hengyi; Pan, Yu (2018). Effects of facial trustworthiness and gender on decision making in the Ultimatum Game. Social Behavior and Personality: an international journal, 46(3), 499-516. (DOI:


As little is yet known about the influence of facial trustworthiness and gender on fairness consideration in decision making, we examined whether a proposer’s facial trustworthiness and gender would influence a responder’s willingness to accept the proposer’s monetary offer. Participants in our study were 79 Chinese undergraduate students (responders) who played the Ultimatum Game with 4 proposers (2 male and 2 female) with different facial trustworthiness. As predicted, responders were more willing to accept offers from trustworthy-looking proposers. We found that facial trustworthiness was a more salient cue when proposers were men than when they were women and, furthermore, that the students’ emotional response to faces was correlated with their fairness consideration. Considering the implicit influence of facial trustworthiness and gender on decision making, potentially there are broader implications of our findings for certain business activities, such as negotiation and bargaining.

New directions for modelling strategic behavior: Game-theoretic models of communication, coordination, and cooperation in economic relationships

Crawford, Vincent P. “New directions for modelling strategic behavior: Game-theoretic models of communication, coordination, and cooperation in economic relationships." Journal of Economic Perspectives 30.4 (2016): 131-50.


==original Abstract==

In this paper, I discuss the state of progress in applications of game theory in economics and try to identify possible future developments that are likely to yield further progress. To keep the topic manageable, I focus on a canonical economic problem that is inherently game-theoretic, that of fostering efficient coordination and cooperation in relationships, with particular attention to the role of communication. I begin with an overview of noncooperative game theory’s principal model of behavior, Nash equilibrium. I next discuss the alternative “thinking" and “learning" rationales for how real-world actors might reach equilibrium decisions. I then review how Nash equilibrium has been used to model coordination, communication, and cooperation in relationships, and discuss possible developments

Where Do Social Preferences Come From?

Date: 2015-08
By: Chaning Jang (Department of Psychology, Princeton University)
John Lynham (Department of Economics & UHERO, University of Hawaii at Manoa; Center for Ocean Solutions, Stanford University)
Where do preferences for fairness come from? We use a unique field setting to test for a spillover of sharing norms from the workplace to a laboratory experiment. Fishermen working in teams receive random income shocks (catching fish) that they must regularly divide among themselves. We demonstrate a clear correlation between sharing norms in the field and sharing norms in the lab. Furthermore, the spillover effect is stronger for fishermen who have been exposed to a sharing norm for longer, suggesting that our findings are not driven by selection effects. Our results are consistent with the hypothesis that work environments shape social preferences.
Keywords: ultimatum game; social preferences; fairness; workplace spillovers
JEL: Q2 C9 C7 B4 D1

Evolution of Fairness and Group Formation in Multi-Player Ultimatum Games

Date: 2015-08
By: NISHIMURA, Takeshi
OKADA, Akira
SHIRATA, Yasuhiro
Group formation is a fundamental activity in human society. Humans often exclude others from a group and divide the group benefit in a fair way only among group members. Such an allocation is called in-group fair. Does natural selection favor an in-group fair allocation? We investigate the evolution of fairness and group formation in a three-person Ultimatum Game (UG) in which the group value depends on its size. In a stochastic model of the frequency-dependent Moran process, natural selection favors the formation of a two-person subgroup in the low mutation limit if its group value exceeds a high proportion (0.7) of that of the largest group. Stochastic evolutionary game theory provides theoretical support to explain the behavior of human subjects in economic experiments of a three-person UG.

Ultimatum game: A meta-analysis of the past three decades of experimental research

Date: 2014-10
By: Jean-Christian Tisserand (CRESE)
The ultimatum game undoubtely lists the largest experimental literature of the past three decades. In this article, we focus on the choice of the proposer of the ultimatum game and the explanatory variables that may influence the amount offered. We perform a meta-analysis with a total of 97 observations from simple ultimatum game gathered through 42 articles published between 1983 and 2012. While the theoretical prediction announces that the equilibrium offer should be zero, our results show that the weighted average offer is 42.3% of the amount at stake. Among the numerous variables studied, only being an economist has a significant impact on the amounts offered.
Keywords: Meta-analysis, Ultimatum game, Experimental economics, Microeconomics, Behavioral economics
JEL: C78 C91 D03

When Ignorance is Bliss* : Information Asymmetries Enhance Prosocial Behavior in Dicator Games

Date: 2014
By: Winschel, Evguenia
Zahn, Philipp
In most laboratory experiments concerning prosocial behavior subjects are fully informed how their decision influences the payoff of other players. Outside the laboratory, however, individuals typically have to decide without such detailed knowledge. To asses the effect of information asymmetries on prosocial behavior, we conduct a laboratory experiment with a simple non-strategic interaction. A dictator has only limited knowledge about the benefits his prosocial action generates for a recipient. We observe subjects with heterogenous social preferences. While under symmetric information only individuals with the same type of preferences transfer, under asymmetric information different types transfer at the same time. As a consequence and the main finding of our experiment, uninformed dictators behave more prosocially than informed dictators.
Keywords: Asymmetric Information , Prosocial Behavior , Efficiency Concern , Inequality Aversion , Dictator Game
JEL: D82 C91

Durable-goods monopoly: laboratory market and bargaining experiments

Reynolds, Stanley S. “Durable-goods monopoly: laboratory market and bargaining experiments." The RAND Journal of Economics (2000): 375-394. 提供的 [PDF]


Results from single-period monopoly experiments (nondurable environment) are compared with results from multiperiod monopoly experiments that have features of a durable-goods environment. Average prices were below the static monopoly benchmark price in all settings. Observed initial prices were higher in multiperiod experiments than in single-period experiments, in contrast to equilibrium predictions. Prices in multiperiod experiments tended to fall over time; there was less price cutting in market experiments than in bargaining experiments. There was substantial demand withholding by buyers in multiperiod experiments. A version of bounded rationality is a promising candidate for explaining deviations from equilibrium predictions.

Market experience is a reference point in judgments of fairness

Date: 2013-07
By: Holger Herz
Dmitry Taubinsky
People’s desire for fair transactions can play an important role in negotiations, organizations, and markets. In this paper, we show that markets can also shape what people consider to be a fair transaction. We propose a simple and generally-applicable model of path-dependent fairness preferences, in which past experiences shape preferences, and we experimentally test the model’s predictions. We find that previous exposure to competitive pressure substantially and persistently reduces subjects’ fairness concerns, making them more likely to accept low offers. Consistent with our theory, we also find that past experience has little effect on subjects’ inclinations to treat others unfairly.
Keywords: Social preferences, reference points, fairness, bargaining
JEL: C78

Literature on three person/outside options/information ultimatum game

Information in ultimatum games: An experimental study

RTA Croson – Journal of Economic Behavior & Organization, 1996 – Elsevier
Considerations of fairness and strategy: Experimental data from sequential games.
Game-theoretic models and the role of information in bargaining. Bargaining and market
behavior in Jerusalem, Ljubljana, Pittsburgh and Tokyo: An experimental study.

[PDF] Two-level ultimatum bargaining with incomplete information: An experimental study

W Güth, S Huck, P Ockenfels – The Economic Journal, 1996 – JSTOR
I73-85. Frankfurt. Guth, W. and van Damme, E. (I 994) -‘Information, strategic behavior
and fairness in ultimatum bargaining – an experimental study. Working Paper,
CentER/Tilburg. Hoffman, E., McCabe, K., Shachat, K. and Smith, VA (I994).

==Three person==

Bargaining outside the lab–a newspaper experiment of a threeperson ultimatum game*

W Güth, C Schmidt, M Sutter – The Economic Journal, 2007 – Wiley Online Library
Werner Gu® th, Carsten Schmidt and Matthias Sutter 5,132 readers of the German weekly,
Die Zeit, participated in a threeperson bargaining experiment. In our data analysis we focus
on (1) the influence of age, gender, profession and medium chosen for participation and (

Information, strategic behavior, and fairness in ultimatum bargaining: An experimental study

W Güth, E Van Damme – Journal of Mathematical Psychology, 1998 – Elsevier
This paper reports on an experimental study of ultimatum bargaining situations in which an
inactive third player is present. The proposerXsuggests an allocation (x, y, z) on how to
divide a cake betweenX, Y, andZ. A messagemthat (partially) reveals this proposal is sent

Tests of fairness models based on equity considerations in a threeperson ultimatum game

JH Kagel, KW Wolfe – Experimental Economics, 2001 – Springer
Abstract Two recent models incorporating fairness considerations into the economics
literature based on agents’ concerns about the distribution of payoffs between themselves
and others (Fehr-Schmidt, 1999, Quarterly Journal of Economics. 114 (3), 769–816;

Incentive contracts versus trust in threeperson ultimatum games: an experimental study

S Büchner, LG González, W Güth, MV Levati – European Journal of Political …, 2004 – Elsevier
Whether incentive contracts outperform trust in terms of productive efficiency is usually
explored by principal-agent experiments. We investigate this question using the simpler and
more neutral frame of a threeperson ultimatum experiment. We find that (mutual) trust is

On ultimatum bargaining experiments—A personal review

W Güth – Journal of Economic Behavior & Organization, 1995 – Elsevier
355-384. Oppewal, H. and E. Tougareva, 1992, A threeperson ultimatum game to investigate
effects of differences in need, sharing rules and observability on bargaining behaviour. Information,
fairness, and strategic behaviour in 3person ultimatum bargaining.

Individual and group behavior in the ultimatum game: Are groups more “rational” players?

G Bornstein, I Yaniv – Experimental Economics, 1998 – Springer
Abstract This article reports two experiments that compared the standard ultimatum
game played by individuals with the same game played by threeperson groups.
In the group treatment, the members of the allocating group

A threeperson ultimatum game to investigate effects of differences in need, sharing rules and observability on bargaining behaviour

H Oppewal, E Tougareva – Journal of economic psychology, 1992 – Elsevier
Abstract This paper describes an extension of the well-known simple two-person ultimatum
game. The extended game includes differences between players in their need for the
payoffs and it includes a third person who shares with the person who accepts an offer. In

[PDF] Responder behavior in threeperson ultimatum game experiments

A Riedl, J Vyrastekova – 2003 –
Abstract We extend the standard ultimatum game to a three person game where the
proposer chooses a three-way split of a pie and two responders independently and
simultaneously choose to accept or reject the proposal. We investigate whether a

[引言] Testing between alternative models of fairness: a new three person ultimatum game

J Kagel, K Wolfe – 1999 – mimeo

Cultural differences in ultimatum game experiments: Evidence from a meta-analysis

H Oosterbeek, R Sloof, G Van De Kuilen – Experimental Economics, 2004 – Springer
and Carnevale, 1997; Messick et al., 1997). – Nor did we include the threeperson
ultimatum game with one proposer and two respon- ders as studied by Güth and Van
Damme (1998). – We also excluded a study in which subjects

Take it or leave it for something better? Responses to fair offers in ultimatum bargaining

R Nelissen, DSI van Someren, M Zeelenberg – Journal of Experimental …, 2009 – Elsevier
In order to investigate whether responders in ultimatum bargains show true concerns for
egalitarianism, we investigated their decisions in a modified version of the ultimatum game that
presented responders with an outside option that was larger than their payoff from accepting

==Outside Options==

Outside options and social comparison in three-player ultimatum game experiments

MJ Knez, CF Camerer – Games and Economic Behavior, 1995 – Elsevier
We conducted ultimatum games in which a proposer offers a division of 10toarespondent,
,withoutsideoptionsof 2 and 4.Therateofrejectedofferswashigherthaninsimi…,around50%, …

被引用 131 次 相關文章 全部共 7 個版本 引用


On perceptions of fairness: The role of valuations, outside options, and information in ultimatum bargaining games

PM Schmitt – Experimental Economics, 2004 – Springer
Abstract This study examines fairness perceptions in ultimatum bargaining games with
asymmetric payoffs, outside options, and different information states. Fairness perceptions
were dependent on treatment conditions. Specifically, when proposers had higher chip

Unfairness, anger, and spite: Emotional rejections of ultimatum offers

MM Pillutla, JK Murnighan – Organizational Behavior and Human Decision …, 1996 – Elsevier
hypotheses in this accept offers that are less than the value of their out- context straightforward:
Rational models suggest that side option. responses to ultimatum offers will only be affected by
The third variable, information, was first investi- the size of offers and outside options.

Cheap talk in bargaining experiments: lying and threats in ultimatum games

R Croson, T Boles, JK Murnighan – Journal of Economic Behavior & …, 2003 – Elsevier
Our experimental design uses a finitely repeated ultimatum game with an outside option
for the responder and two-sided asymmetric information (about that outside option for
the proposer and about the size of the pie for the responder).

An outside option experiment

K Binmore, A Shared, J Sutton – The Quarterly Journal of …, 1989 –
0, and b1 + b2 .^. M. Breakdown will be assumed to be precipitated by one or other of the players
leaving the negotiation table for good in order to take up his outside option b4.

An experimental investigation of ultimatum games: Information, fairness, expectations, and lowest acceptable offers

PG Straub, JK Murnighan – Journal of Economic Behavior & Organization, 1995 – Elsevier
27 (1995) 345-364 349 nothing. Although the results from multiple trial demand games with
outside options suggested that equal outcomes were not particularly salient, the question
remains whether fairness is a consideration in one-shot ultimatum games.

[PDF] A general experiment on bargaining in demand games with outside options

LM Kahn, JK Murnighan – The American Economic Review, 1993 – JSTOR
when s = 10 percent, p = 0.5, and d = 0.8 (although it is nearly as large when d = 1). When p is
0.5, the negotiation resembles an ultimatum game, and the existence of a 10-percent outside
option does not greatly affect the equilibrium compared to a game with no outside option.

Learning to be imperfect: The ultimatum game

J Gale, KG Binmore, L Samuelson – Games and Economic Behavior, 1995 – Elsevier
toughness. Even when we do play anonymously, outside options are often available.
For experiments. Short-run refusals of positive offers in the pure Ultimatum Game
therefore create no problem for orthodox game theory. However

Why people reject advantageous offers—Non-monotonic strategies in ultimatum bargaining: Evaluating a video experiment run in PR China

H Hennig-Schmidt, ZY Li, C Yang – Journal of Economic Behavior & …, 2008 – Elsevier
Numerous symmetric ultimatum game experiments (UG in the following) with zero outside
options have shown that individual proposers typically offer 30–50 percent of the pie,
with the equal split often being the modal and median offer.

Social utility in ultimatum bargaining

MJJ Handgraaf, E Van Dijk, D De Cremer – Social Justice Research, 2003 – Springer
Presence of Outside Options Introducing an outside option to the ultimatum game (ie, giving
one or both players the opportunity to receive endowments when no agreement is reached)
may greatly influence the weights of equity and self-interest.

An experimental investigation of ultimatum games: Information, fairness, expectations, and lowest acceptable offers

PG Straub, JK Murnighan – Journal of Economic Behavior & Organization, 1995 – Elsevier
Binmore, Kenneth, Avner Shaked, and John Sutton, 1989, An Outside Option
Experiment, Quarterly Journal of Economics, 104, 753-770. An Outside Option
Experiment. Quarterly Journal of Economics, 104 (1989), pp. 753–770.

Bargaining and search with incomplete information about outside options

K Chatterjee, CC Lee – Games and Economic Behavior, 1998 – Elsevier
3; KG Binmore, A. Shaked, J. Sutton; An Outside Option Experiment. Quarterly Journal of
Economics, 104 (1989), pp. 753–770. Full Text via CrossRef. 4; Chatterjee, K. Dutta, B. 1995,
Rubinstein Auctions: On Competition for Bargaining Partners, Pennsylvania State University

A general experiment on bargaining in demand games with outside options

LM Kahn, JK Murnighan – The American Economic Review, 1993 – JSTOR
1264 THE AMERICAN ECONOMIC REVIEW Participants in the experiment were 118
undergraduates (typically juniors and se- niors) in marketing and management classes who were
randomly assigned to be player 1 or player 2. Each player 2 had an outside option, paid in the

Outside options in a bargaining model with decay in the size of the cake

A Dalmazzo – Economics Letters, 1992 – Elsevier
Binmore, KG, A. Shaked and J. Sutton, 1989, An outside option experiment, Quarterly Journal
of Economics, 104, 753-770. An outside option experiment. Quarterly Journal of Economics, 104
(1989), pp. 753–770. Full Text via CrossRef. Chae and Yang, 1988; S. Chae, J.-A. Yang

Fairness, escalation, deference, and spite: strategies used in labor-management bargaining experiments with outside options

J Carpenter, MA Rudisill – Labour Economics, 2003 – Elsevier
Approximately the same number of interactions ended at each of the two ultimatum
subgames (half those firms that searched took the outside option). Outside options and
social comparison in three-player ultimatum game experiments.



Ultimatum bargaining behavior: A survey and comparison of experimental results

W Güth, R Tietz – Journal of Economic Psychology, 1990 – Elsevier
The fold theorem in repeated games with discounting and with incomplete information.
Econometrica 54, 533-554. Gdth, W., 1988. pp. 703-717. Gh, W. and R. Tietz, 1985. `Strategic
power versus distributive justice. Homans, GC, 1961. Social behavior: Its elementary forms.