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Short- and long-run goals in ultimatum bargaining: impatience predicts spite-based behavior.

Espín AM, Exadaktylos F, Herrmann B, Brañas-Garza P - Front Behav Neurosci (2015)

Bottom Line: If the responder rejects, neither player gets anything.This behavior systematically reduces the payoffs of those who interact with impatient individuals.These findings indicate that competitively reducing other's payoffs, rather than fairness (or self-interest), is the short-run goal in ultimatum bargaining.

View Article: PubMed Central - PubMed

Affiliation: Department of Economics, Business School, Middlesex University London London, UK ; GLOBE, Departamento de Teoría e Historia Económica, Universidad de Granada Granada, Spain.

ABSTRACT
The ultimatum game (UG) is widely used to study human bargaining behavior and fairness norms. In this game, two players have to agree on how to split a sum of money. The proposer makes an offer, which the responder can accept or reject. If the responder rejects, neither player gets anything. The prevailing view is that, beyond self-interest, the desire to equalize both players' payoffs (i.e., fairness) is the crucial motivation in the UG. Based on this view, previous research suggests that fairness is a short-run oriented motive that conflicts with the long-run goal of self-interest. However, competitive spite, which reflects an antisocial (not norm-based) desire to minimize others' payoffs, can also account for the behavior observed in the UG, and has been linked to short-run, present-oriented aspirations as well. In this paper, we explore the relationship between individuals' intertemporal preferences and their behavior in a citywide dual-role UG experiment (N = 713). We find that impatience (short-run orientation) predicts the rejection of low, "unfair" offers as responder and the proposal of low, "unfair" offers as proposer, which is consistent with spitefulness but inconsistent with fairness motivations. This behavior systematically reduces the payoffs of those who interact with impatient individuals. Thus, impatient individuals appear to be keen to minimize their partners' share of the pie, even at the risk of destroying it. These findings indicate that competitively reducing other's payoffs, rather than fairness (or self-interest), is the short-run goal in ultimatum bargaining.

No MeSH data available.


Related in: MedlinePlus

Offer, minimum acceptable offer (MAO), and Offer-MAO by delay discounting (DD) groups. Mean (±robust SEM clustered by interviewer) offer (A), MAO (B), and offer-MAO (C) by groups of DD. Both offers and MAOs are plotted in terms of their deviation from the mean behavior. From left to right and separated by dashed lines, the short-run, long-run, and combined DD appear split in terciles (“low,” “med,” and “high” for the first, second, and third tercile, respectively).
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Figure 1: Offer, minimum acceptable offer (MAO), and Offer-MAO by delay discounting (DD) groups. Mean (±robust SEM clustered by interviewer) offer (A), MAO (B), and offer-MAO (C) by groups of DD. Both offers and MAOs are plotted in terms of their deviation from the mean behavior. From left to right and separated by dashed lines, the short-run, long-run, and combined DD appear split in terciles (“low,” “med,” and “high” for the first, second, and third tercile, respectively).

Mentions: In Figure 1 we show the mean (± robust SEM clustered by interviewer) offer (panel A), MAO (panel B), and offer-MAO (panel C) as a function of different DD characterizations. Short- and long-run DD are measured based on the number of impatient responses (from 0 to 6) the individual made for each of the two subtasks, while “combined DD” refers to the average of the above DD measures ([DDs+DDl]/2). For visual clarity we categorized individuals in three groups according to their DD (as in Espín et al., 2012) and plot offers and MAOs in terms of their deviation from the mean offer (0.462 ± 0.007) and MAO (0.350 ± 0.009), defined as a fraction of the pie. Positive deviations indicate above-average offers or MAOs in each case. From left to right and separated by dashed lines, the short-run, long-run, and combined DDs appear split in terciles (“low,” “med,” and “high” for the bottom, middle, and top tercile, respectively).


Short- and long-run goals in ultimatum bargaining: impatience predicts spite-based behavior.

Espín AM, Exadaktylos F, Herrmann B, Brañas-Garza P - Front Behav Neurosci (2015)

Offer, minimum acceptable offer (MAO), and Offer-MAO by delay discounting (DD) groups. Mean (±robust SEM clustered by interviewer) offer (A), MAO (B), and offer-MAO (C) by groups of DD. Both offers and MAOs are plotted in terms of their deviation from the mean behavior. From left to right and separated by dashed lines, the short-run, long-run, and combined DD appear split in terciles (“low,” “med,” and “high” for the first, second, and third tercile, respectively).
© Copyright Policy
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4538919&req=5

Figure 1: Offer, minimum acceptable offer (MAO), and Offer-MAO by delay discounting (DD) groups. Mean (±robust SEM clustered by interviewer) offer (A), MAO (B), and offer-MAO (C) by groups of DD. Both offers and MAOs are plotted in terms of their deviation from the mean behavior. From left to right and separated by dashed lines, the short-run, long-run, and combined DD appear split in terciles (“low,” “med,” and “high” for the first, second, and third tercile, respectively).
Mentions: In Figure 1 we show the mean (± robust SEM clustered by interviewer) offer (panel A), MAO (panel B), and offer-MAO (panel C) as a function of different DD characterizations. Short- and long-run DD are measured based on the number of impatient responses (from 0 to 6) the individual made for each of the two subtasks, while “combined DD” refers to the average of the above DD measures ([DDs+DDl]/2). For visual clarity we categorized individuals in three groups according to their DD (as in Espín et al., 2012) and plot offers and MAOs in terms of their deviation from the mean offer (0.462 ± 0.007) and MAO (0.350 ± 0.009), defined as a fraction of the pie. Positive deviations indicate above-average offers or MAOs in each case. From left to right and separated by dashed lines, the short-run, long-run, and combined DDs appear split in terciles (“low,” “med,” and “high” for the bottom, middle, and top tercile, respectively).

Bottom Line: If the responder rejects, neither player gets anything.This behavior systematically reduces the payoffs of those who interact with impatient individuals.These findings indicate that competitively reducing other's payoffs, rather than fairness (or self-interest), is the short-run goal in ultimatum bargaining.

View Article: PubMed Central - PubMed

Affiliation: Department of Economics, Business School, Middlesex University London London, UK ; GLOBE, Departamento de Teoría e Historia Económica, Universidad de Granada Granada, Spain.

ABSTRACT
The ultimatum game (UG) is widely used to study human bargaining behavior and fairness norms. In this game, two players have to agree on how to split a sum of money. The proposer makes an offer, which the responder can accept or reject. If the responder rejects, neither player gets anything. The prevailing view is that, beyond self-interest, the desire to equalize both players' payoffs (i.e., fairness) is the crucial motivation in the UG. Based on this view, previous research suggests that fairness is a short-run oriented motive that conflicts with the long-run goal of self-interest. However, competitive spite, which reflects an antisocial (not norm-based) desire to minimize others' payoffs, can also account for the behavior observed in the UG, and has been linked to short-run, present-oriented aspirations as well. In this paper, we explore the relationship between individuals' intertemporal preferences and their behavior in a citywide dual-role UG experiment (N = 713). We find that impatience (short-run orientation) predicts the rejection of low, "unfair" offers as responder and the proposal of low, "unfair" offers as proposer, which is consistent with spitefulness but inconsistent with fairness motivations. This behavior systematically reduces the payoffs of those who interact with impatient individuals. Thus, impatient individuals appear to be keen to minimize their partners' share of the pie, even at the risk of destroying it. These findings indicate that competitively reducing other's payoffs, rather than fairness (or self-interest), is the short-run goal in ultimatum bargaining.

No MeSH data available.


Related in: MedlinePlus