EconPapers    
Economics at your fingertips  
 

Equilibrium play in voluntary ultimatum games: Beneficence cannot be extorted

Vernon Smith and Bart Wilson ()

Games and Economic Behavior, 2018, vol. 109, issue C, 452-464

Abstract: An exceptionally robust result in experimental economics is the failure to observe equilibrium (subgame perfect) play in the ultimatum game. A heretofore unnoticed feature of the game is that neither player voluntarily chooses to play. Motivated by Adam Smith's proposition that beneficence—like that of non-equilibrium play in the ultimatum game—cannot be extorted by force, we offer the responder the opportunity to opt out of the game for a mere $1 payoff for both players. We observe far higher rates of equilibrium play, including highly unequal splits, than heretofore reported in binary choice versions of the game.

Keywords: Ultimatum games; Voluntary play; Adam Smith; Experimental economics (search for similar items in EconPapers)
JEL-codes: C91 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0899825618300149
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Equilibrium Play in Voluntary Ultimatum Games: Beneficence Cannot Be Extorted (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:109:y:2018:i:c:p:452-464

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-11-07
Handle: RePEc:eee:gamebe:v:109:y:2018:i:c:p:452-464