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Author:Rapoport, A.
Title:Ultimatums in two-person bargaining with one-sided uncertainty: Demand games
Journal:Journal of Economic Behavior and Organization
1996 : AUG, VOL. 30:2, p. 173-196
Index terms:ECONOMIC BEHAVIOUR
ORGANIZATION
UNCERTAINTY
Language:eng
Abstract:The demand game is a noncooperative two-person ultimatum game with one-sided uncertainty in which the Sender knows the value of the shared surplus (pie) but the receiver only knows its probability distribution. The authors study experimentally the effects of systematic changes in the variability of the pie distribution on the sender's proposals and Receiver's (binary) responses. In accordance with a behavioral theory that the authors propose, they find that the Sender's proportional share of the pie increases as the receiver's uncertainty about the pie increases.
SCIMA record nr: 154406
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