Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/214294
Authors: 
Bohnet, Iris
Zeckhauser, Richard
Year of Publication: 
2004
Series/Report no.: 
CREMA Working Paper 2004-08
Abstract: 
This paper employs experiments to examine the effects of social comparisons in ultimatum bargaining. We inform responders on the average offer before they decide whether to accept or reject their specific offer. To provide a metric for social comparison effects, we compare them with another change in informational conditions, asymmetric information on the pie size. Knowing comparable offers or knowing the pie size increases offers and rejection probabilities by similar magnitudes. Our results are consistent with people disliking deviations from the norm of equity but inconsistent with fairness theories, where people dislike income disparity between themselves and their referents.
Subjects: 
Experimental bargaining
social comparisons
asymmetric information
ultimatum game
JEL: 
C91
Document Type: 
Working Paper

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