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Participation costs for responders can reduce rejection rates in ultimatum bargaining

Wichardt, Philipp C; Schunk, Daniel; Schmitz, Patrick W (2008). Participation costs for responders can reduce rejection rates in ultimatum bargaining. Working paper series / Institute for Empirical Research in Economics No. 398, University of Zurich.

Abstract

This paper reports data from an ultimatum mini-game in which responders first had to choose whether or not to participate. Participation was costly, but the participation cost was smaller than the minimum payoff that a responder could guarantee himself in the ultimatum game. Compared to a standard treatment, we find that the rejection rate of unfavorable offers is significantly reduced when participation is costly. A possible explanation based on cognitive dissonance is offered.

Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
Dewey Decimal Classification:330 Economics
Scope:Discipline-based scholarship (basic research)
Language:English
Date:December 2008
Deposited On:29 Nov 2011 22:47
Last Modified:13 Mar 2024 14:34
Series Name:Working paper series / Institute for Empirical Research in Economics
ISSN:1424-0459
OA Status:Green
Other Identification Number:merlin-id:5358

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