The ultimatum game is a workhorse for economics experiments. Subject A has 100 dollars to split with Subject B. A proposes a division and if B accepts then the division is carried out. If B rejects then both parties get nothing. In these experiments, A is surprisingly generous and B is surprisingly spiteful. A Fine Theorem makes a good point:
…I’m sure someone has done this but I don’t have a cite, the “standard” instructions in ultimatum games seem to prime the results to a ridiculous degree. Imagine the following exercise. Give 100 dollars to a research subject (Mr. A). Afterwards, tell some other subject (Ms. B) that 100 dollars was given to Mr. A. Tell Mr. A that the other subject knows he was given the money, but don’t prime him to “share” or “offer a split” or anything similar. Later, tell Ms. B that she can, if she wishes, reverse the result and take the 100 dollars away from A – if she does so, had Mr. A happened to have given her some of the money, that would also be taken. I hope we can agree that if you did such an experiment, A would share no money and B would show no spite, as neither has been primed to see the 100 dollars as something that should have been shared in the first place. One doesn’t normally expect anonymous strangers to share their good fortune with you, surely. That is, feelings of spite, jealousy and fairness can be, and are, primed by researchers. I think this is worth keeping in mind when trying to apply the experimental results on ultimatum games to the real economy.
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September 6, 2011 at 11:45 am
Alex
In an experiment with no ‘how much do you want to share’ question there doesn’t appear to be an opportunity to share, so of course the results would suggest no sharing and no hard feelings for the respondent. What might make priming less relevant would be if a sheet of mostly long-winded and arbitrary rules was provided: a statement on how to share the stake could be included here without highlighting that sharing is an integral part of the game.
September 6, 2011 at 1:09 pm
Anonymous
Unsure about ultimatum game, but there are some interesting results along precisely these lines with the dictator game:
Bardsley, Nicholas. 2005. “Dictator Game Giving: Altruism or Artefact? A Note.”
Paper presented at the Economic Science Association meeting, Montreal,
June. Forthcoming, Experimental Econ.
List, John A. 2007. “On the Interpretation of Giving in Dictator Games”
Journal of Political Economy, (2007), 115(3), pp. 482-494.
September 6, 2011 at 9:18 pm
Will Johnson
If anyone out there thinks that the typical results of ultimatum game experiments imply that, in the real economy, there must be hordes of people just giving away large fractions of their money to random strangers, then yes, he/she is a tad off-base, and A Fine Theorem does a good job explaining why.
But I think that’s a bit of a straw man; I think people point to ultimatum game experiments just to show that when people are thrown into situations that challenge them ethically, they generally behave moderately selflessly.
September 7, 2011 at 1:36 am
“Stakes Matter in Ultimatum Games,” S. Andersen, S. Ertac, U. Gneezy, M. Hoffman & J. List « A Fine Theorem
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