Information in Repeated Ultimatum Game with Unknown Pie Size
Joint Authors
Lee, Ching Chyi
Lau, William K.
Source
Economics Research International
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-02-07
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
Within existing literature, it is well known that people’s behavior in ultimatum game experiments cannot be explained by perfect rationality model.
There is, however, evidence showing that people are boundedly rational.
In this paper, we studied repeated ultimatum game experiments in which the pie size is only known to the proposer (player 1), but the transaction history is made known to both players.
We found that subject’s behavior can be very well explained by the history-consistent-rationality model (HCR model) of Lee and Ferguson (2010), which suggests that people’s behavior is affected by what they observed in the past.
The HCR model is able to yield point predictions whose errors are on average within 5% of the total pie size.
The experimental results provide evidence that subjects' behavior is boundedly rational with respect to the transaction history.
American Psychological Association (APA)
Lee, Ching Chyi& Lau, William K.. 2013. Information in Repeated Ultimatum Game with Unknown Pie Size. Economics Research International،Vol. 2013, no. 2013, pp.1-8.
https://search.emarefa.net/detail/BIM-474055
Modern Language Association (MLA)
Lee, Ching Chyi& Lau, William K.. Information in Repeated Ultimatum Game with Unknown Pie Size. Economics Research International No. 2013 (2013), pp.1-8.
https://search.emarefa.net/detail/BIM-474055
American Medical Association (AMA)
Lee, Ching Chyi& Lau, William K.. Information in Repeated Ultimatum Game with Unknown Pie Size. Economics Research International. 2013. Vol. 2013, no. 2013, pp.1-8.
https://search.emarefa.net/detail/BIM-474055
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-474055