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Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making
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Bargaining over waiting time in ultimatum game experiments.

Roger Berger1, Heiko Rauhut, Sandra Prade

  • 1Universität Leipzig, Institut für Soziologie, Beethovenstraße 15, 04107 Leipzig, Germany.

Social Science Research
|September 29, 2012
PubMed
Summary
This summary is machine-generated.

This study explored social preferences using an ultimatum game with waiting time, finding behavior consistent with monetary bargaining. Anonymity did not significantly alter these other-regarding economic decisions.

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Area of Science:

  • Behavioral Economics
  • Experimental Economics
  • Sociology

Background:

  • Accurate measurement of social preferences is crucial in economics and sociology.
  • Traditional experiments often use 'cake-dividing' scenarios, which may not fully capture inherent conflicts.
  • Windfall gains in experiments can confound the measurement of genuine social preferences.

Purpose of the Study:

  • To conduct the first ultimatum game experiment bargaining over waiting time.
  • To avoid windfall gain effects and better measure inherent conflicts in social preference games.
  • To investigate the impact of varying anonymity levels on bargaining behavior.

Main Methods:

  • An ultimatum game experiment was designed where participants bargained over waiting time.
  • Three anonymity conditions were implemented: baseline, subject anonymity, and double-blind.
  • Waiting time was used instead of money to represent a natural loss, avoiding windfall gains.

Main Results:

  • The modal offer in the waiting time ultimatum game was 50% of the time.
  • Only one offer was rejected across all conditions, indicating fairness.
  • Varying levels of anonymity did not significantly alter the bargaining outcomes or rejection rates.

Conclusions:

  • Experimental results confirm other-regarding behavior in the ultimatum game, even when bargaining over time.
  • Bargaining over time, unlike donated money, provides a more natural measure of inherent conflict.
  • The findings align with previous ultimatum game experiments involving monetary divisions.