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Fairness, One's Source of Income, and Others' Decisions: An Ultimatum Game Experiment

Kangoh Lee and Quazi Shahriar

Managerial and Decision Economics, 2017, vol. 38, issue 3, 423-431

Abstract: In an ultimatum game experiment, this paper studies the effects of the proposer's source of income, earned income and unearned income, on the responder's decision to accept or reject the proposer's offer. The results show that as the earned‐income fraction increases, the responder tends to accept a lower offer. The results have implications for other types of behavior such as the demand for redistribution. Copyright © 2016 John Wiley & Sons, Ltd.

Date: 2017
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