Ultimatum Games and Wages: Evidence of an “Implicit Bargain”?
Schmalenbach Business Review (sbr), 2003, vol. 55, issue 2, 161-171
In this paper, I argue that both ultimatum game outcomes and wages may be in¬fluenced by what the result of a bargain would have been: The players in the ultimatum game, just as the parties to the labor contract, seem to engage in what may be called an “implicit” or, in Selten' s words, an “imaginary” bargain. In determining ultimatum game outcomes, assuming an implicit bargain can account for the experimental evidence on the role of responder bargaining power. Moreover, the implications of the implicit bar¬gain for the wage setting process are compatible with the stylized facts of wage determination.
Keywords: Ultimatum Game; Wage Determination; Nash Bargain. (search for similar items in EconPapers)
JEL-codes: J31 M12 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:sbr:abstra:v:55:y:2003:i:2:p:161-171
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