Inequity aversion and advantage seeking with asymmetric competition

Caleb Cox

Journal of Economic Behavior & Organization, 2013, vol. 86, issue C, 121-136

Abstract: In this experiment I study a novel three-player ultimatum game in which two proposers with unequal amounts of money simultaneously submit offers to one responder, who may accept at most one offer. I compare the predictions of inequity aversion, advantage seeking, and self-interest. Unlike previously studied cases of symmetric proposer competition, the predictions of these models do not coincide in the asymmetric case. The experimental results show that responders sometimes accept the smaller offer, and the degree of asymmetry between proposers affects responder behavior. The results further suggest heterogeneity among responders, with advantage-seeking preferences occurring most frequently.

Keywords: Behavioral economics; Fairness; Experiments; Ultimatum game; Competition (search for similar items in EconPapers)
JEL-codes: C91 C92 D03 D63 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:86:y:2013:i:c:p:121-136

DOI: 10.1016/j.jebo.2012.12.020

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