Interpersonal comparisons of utility in bargaining: evidence from a transcontinental ultimatum game

Romina Boarini, Jean-François Laslier and Stéphane Robin ()
Additional contact information
Romina Boarini: OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po

Post-Print from HAL

Abstract: This paper presents the experimental results of a "Transcontinental Ultimatum Game" implemented between India and France. We use a standard ultimatum game, but in one treatment Indian subjects made offers to French subjects (ItoF treatment) and, in another treatment, French subjects made offers to Indian subjects (FtoI treatment). We observed that FtoI treatment bargaining mostly ended up with unequal splits of money in favor of French, while nearly equal splits were the most frequent outcome in ItoF treatment interactions. The experimental results are organized through a standard social reference model, modified for taking into account the different marginal value of money for bargainers. In our model bargaining is driven by relative standings comparisons between players, occurring in terms of real earnings (that is monetary earnings corrected for a purchasing power factor) obtained in the game. The norm of equity behind the equalization of real earnings is called local equity norm, and contrasted to a global equity norm which would encompass the wealth of players beyond the game. According to what we observed, no beyond-game concern seems to be relevantly endorsed by subjects.

Keywords: Interpersonal Comparisons of Utility; Fairness; Bargaining experiment; Ultimatum Game (search for similar items in EconPapers)
Date: 2009
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00451566v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published in Theory and Decision, 2009, 67 (4), pp 341-373. ⟨10.1007/s11238-009-9135-5⟩

Downloads: (external link)
https://shs.hal.science/halshs-00451566v1/document (application/pdf)

Related works:
Journal Article: Interpersonal comparisons of utility in bargaining: evidence from a transcontinental ultimatum game (2009)
Working Paper: Interpersonal Comparisons of Utility in Bargaining: Evidence from a Transcontinental Ultimatum Game (2009)
Working Paper: Interpersonal Comparisons of Utility in Bargaining: Evidence from a Transcontinental Ultimatum Game (2009)
Working Paper: Interpersonal comparisons of utility in bargaining: evidence from a transcontinental ultimatum game (2009)
Working Paper: Interpersonal Comparisons of Utility in Bargaining: Evidence from a Transcontinental Ultimatum Game (2006)
Working Paper: Interpersonal comparisons of utility in bargaining: Evidence from a transcontinental Ultimatum Game (2004)
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:hal:journl:halshs-00451566

DOI: 10.1007/s11238-009-9135-5

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().