Exact(2)
The proposer proposes how to share the sum and the recipient can either accept or reject the proposal.
(In particular, Wertheimer believes that this is frequently best understood as a question of whether the proposer proposes to violate the recipient's rights (Wertheimer 1987, 217).)[13] Yet the mere fact that something threatens one is not sufficient to ground a claim that it coerces anyone; the threat may be wrongful but also trivial.
Similar(58)
To study whether a worker's own promise of effort level governs his real choice of effort in a gift exchange game, we implement four treatments in our experiments by varying two factors: (1) who (the firm or the worker) takes the position of the proposer to propose the contract and (2) whether the proposed contract includes a nonbinding specification of the worker's effort level.
The game is simple: one player, the "proposer", is given some money and proposes a way to split the pie with a second player, the "responder".
Two hypotheses have been proposed to explain why proposers distribute money in a relatively fair manner6, 7. The first hypothesis suggests that proposers care about the welfare of others and behave generously out of altruistic motives6, 8,9,10.
In conclusion, our findings favoured the hypothesis that proposers offer fairly based on the strategic motives.
In the ultimatum game, proposers suggest a division which their partners can accept or reject.
The behavioral variables included the proposers' offer distribution, proposers' type distribution, mean offer, total earnings and the responders' acceptance rate.
Why do Proposers offer generally fair (i.e. equal split) offers in the Ultimatum Game?
Quality control is left to the task proposer, and a reputation mechanism is used proposing higher paid tasks only to users that have proved their efficiency on lower paid ones.
The result totally changes when it is the low quality firm the proposer since the difference in profits of proposing a (H) merger increase with respect to those of proposing a (V) one, that is a (H) merger is a better instrument for low quality firms to partially compensate from their disadvantage in quality.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com