Fairness Dominating Human Behavior in Ultimatum Bargaining GameInitiative

Marc Piazolo ()
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Marc Piazolo: University of Applied Sciences Kaiserslautern

from Óbuda University, Keleti Faculty of Business and Management

Abstract: In 2013, we conducted an international field experiment on human behavior in South Africa and Germany. For this ulitmatum bargaining game, an inheritance of 12,000 ZAR (1,000 EUR) had to be split up. Three randomly selected participants slipped into the roles of the beneficiaries: Andy had the right to propose the distribution of the inheritance. Berta could either accept or reject the proposal. Carlos had no rights at all. As proposer, a large majority opted for an equal split. This was followed by the two power coalitions with 19% of the votes. Less than 4% opted for the proposal of homo oeconomicus (10,000-1,000-1,000 ZAR). Statistically significant differences in behavior exist between Germans and South Africans. In general, inequality aversion is much stronger among South Africans. While two thirds of South Africans propose an equal split, less than half of the Germans do. Gender as well as economic education also help to explain the internaitonal differences in behavior.

Keywords: Ultimatum Bargaining Game; International Field Experiment; Fairness; Rational Behavior (search for similar items in EconPapers)
Date: 2015
ISBN: 9786155460470
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