Influence of Social Preferences on Responder Behavior in the Ultimatum Game
Experimental results from the ultimatum game, involving groups like Kenyan farmers and US students, demonstrate that many Responders do not act out of pure self-interest. Their decisions to reject positive but low offers indicate the influence of social preferences, such as inequality aversion, reciprocity, and adherence to social norms regarding fairness.
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CORE Econ
Introduction to Microeconomics Course
Ch.4 Strategic interactions and social dilemmas - The Economy 2.0 Microeconomics @ CORE Econ
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
Related
Comparison of Proposer Offers: Kenyan Farmers vs. US Students
Disentangling Cultural, Occupational, and National Influences in Ultimatum Game Behavior
In an economic experiment, a 'Proposer' offers a split of a sum of money to a 'Responder'. If the Responder accepts, they both get the money as proposed; if the Responder rejects, both get nothing. When comparing US students and Kenyan farmers as Responders, researchers found that while a 50% offer was accepted by nearly everyone, farmers were far more likely than students to reject offers of 30% or less. Which of the following statements best analyzes the behavior of the Kenyan farmers?
Interpreting Economic Behavior
Critiquing Interpretations of Economic Experiments
Consider a bargaining scenario where a 'Proposer' offers a split of a sum of money, and a 'Responder' can either accept the deal or reject it, in which case neither person gets anything. In a study comparing two distinct cultural groups, Group A (Kenyan farmers) was far more likely to reject low offers (e.g., 20% of the total sum) than Group B (US students). Based on this outcome, one can definitively conclude that individuals in Group A are less motivated by personal monetary gain than individuals in Group B.
Explaining Behavioral Differences in Economic Games
In a bargaining scenario, a 'Proposer' offers to split a sum of money with a 'Responder'. The Responder can accept the offer, or reject it, in which case neither person receives anything. An experiment found that while almost all participants from both groups accepted a 50% offer, Kenyan farmers were much more likely to reject a low offer (e.g., 20%) than US students. A critic of the study argues, 'This result simply shows that the farmers are irrational because any rational person would accept any amount of money rather than get nothing.' Which of the following provides the strongest counter-argument to this critic's claim?
In a one-shot bargaining game, a 'Proposer' offers a split of a sum of money, and a 'Responder' can accept or reject it. If rejected, neither party gets anything. An experiment compared two culturally distinct groups of Responders, 'Group A' and 'Group B'. Match each behavioral pattern observed in the experiment to its most likely underlying driver.
Strategic Proposing in a Bargaining Game
Predicting Behavior in Economic Games
Designing an Experiment to Isolate Motivations
Influence of Social Preferences on Responder Behavior in the Ultimatum Game
Offer Structure in the Kenyan/US Ultimatum Game Experiment
Figure 4.17: Responder Acceptance Rates in the Kenyan/US Ultimatum Game
Learn After
In a one-time, anonymous interaction, Person A is given $100 and must propose a split with Person B. Person B can either accept the proposed split, in which case both get the money as proposed, or reject it, in which case neither person receives anything. Person A offers $5 to Person B, keeping $95 for themselves. Person B rejects the offer. Which statement best analyzes Person B's decision?
Analyzing Economic Decisions in a Community Project
The decision of a Responder in an ultimatum game to reject a low but positive monetary offer is considered economically irrational because it violates the principle of maximizing personal monetary gain.
Predicting Behavior Based on Social Norms
Evaluating Motivations in the Ultimatum Game
In a one-shot, anonymous game, a 'Proposer' offers a split of a sum of money to a 'Responder'. The Responder can either accept or reject the offer. If they reject, neither person gets anything. Match each of the following motivations with the Responder's most likely corresponding thought process for their decision.
In a one-shot bargaining game where one person proposes how to split a sum of money and a second person can accept or reject the offer (with rejection meaning neither gets anything), the second person's decision to reject a small but positive offer is often motivated by social preferences like a desire for fairness or ______, which is the impulse to punish behavior perceived as unkind.
Analyzing the Impact of Anonymity on Bargaining Behavior
In an experiment, two groups of people (Group A and Group B) play a bargaining game. In this game, one person (the 'Proposer') is given a sum of money and must offer a portion of it to a second person (the 'Responder'). The Responder can either accept the offer, and the money is split as proposed, or reject it, in which case neither person receives anything. The interactions are anonymous and happen only once. The results are summarized below:
Group A Group B Average Offer from Proposer 42% of the total sum 28% of the total sum Rejection Rate for Offers < 20% 90% 35% Based on this data, which conclusion is best supported?
In a one-shot, anonymous bargaining game, one individual (the 'Proposer') is given $20 and instructed to offer a portion of it to a second individual (the 'Responder'). If the Responder accepts, the money is split as proposed. If the Responder rejects, neither individual receives any money. The Proposer offers $2 to the Responder. The Responder rejects the offer. Which statement best analyzes the Responder's action based on common findings in behavioral economics experiments?
Predicting Behavior Based on Social Norms