ECO331H1 Chapter Notes - Chapter social distance: Subgame Perfect Equilibrium, Dictator Game, Ultimatum Game
Document Summary
Week 10: social distances and other-regarding behavior in dictator games. This paper asks: can instructional and procedural manipulation be used systematically to understand social norms that cause deviations from game theoretic predictions in dictator and other games. Find: manipulations intended to affect subject"s degree of social distance from experimenter and assumed to affect expectations of reciprocity play key role in determining behavior. In ultimatum game, subgame perfect nash equilibrium is to offer out of and for player 2 to accept. Actual experimental data shows modal offer is dividing half the pie. Studies are lower in dictator game than in ultimatum game. Fairness alone does not account for generous offers. In double-blind procedure, 64% of offers in dictator game were sh, only 8% offered more than. Hypothesis: difference is due to social distance/sense of coupling between dictator and counterpart.
