We conduct an ultimatum game with three treatments: one in which endowments are earned through a real effort task (answering spelling questions under time pressure), one in which endowments are awarded through lotteries, and a standard ultimatum game with exogenously provided wealth. When subjects earn the money at stake, the modal response ceases to be an equal split, as proposals anchor around comparative earnings and these proposals are statistically different from those observed in the other treatments. Moreover, roughly half of lower earners propose keeping less than 50% of the pot for themselves. We argue that these results are best explained by Bicchieri’s account of norms and that equity, rather than equality, becomes the dominant norm in ultimatum bargaining when endowments are earned.
The origin of wealth matters: Equity norms trump equality norms in the ultimatum game with earned endowments
The origin of wealth matters: Equity norms trump equality norms in the ultimatum game with earned endowments
Recent Publications
- “Equal Opportunity, Not Reparations” in the Handbook of Equality of Opportunity (2024)
- “A Bayesian Solution to Hallsson’s Puzzle”
- Markets without Limits: Moral Virtues and Commercial Interests, 2nd Edition
- “Optimizing political influence: a jury theorem with dynamic competence and dependence”
- Why not anarchism?
Recent News
- Advocacy group concerned pay-for-plasma clinics expanding to Ontario will hurt voluntary donations
- Jason Brennan and Hélène Landemore, Debating Democracy (University of Zurich’s UBS Center, 2024)
- Jason Brennan “Everything Wrong with Democracy” on the Alex O’Connor Podcast (January 28, 2024)
- On the affirmative action ruling, the Supreme Court got it half right
- Is the effective altruism movement in trouble?