When Culture does not matter: Experimental Evidence from Coalition Formation Ultimatum Games in Austria and Japan

Akira Okada and Arno Riedl

No 99-043/1, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper reports the results of a cross-country comparison between Austria andJapan for an experimental 3-personcoalition formation ultimatum game. The experimental design allows thecomparison with respect to three decisions. (i)The coalition decision, (ii) proposers' demand behavior in 2- and 3-personultimatum subgames, and (iii) theresponders' behavior in these subgames. In contrast to other cross-culturalstudies in experimental bargainingenvironments we can not find any (significant) difference in behavior betweensubjects in Austria and Japan. Weattribute the behavioral similarities mainly to a subtle focal point andresponder competition effect, which wipe outpossible cultural differences. Our conclusion is that even in environments -like bargaining - where cultural differencesmay play a prominent role the show-up of these differences is highly sensitiveto the exact context in which people act.

Date: 1999-06-11
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