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Inequity Aversion and Strategic Considerations: An Experimental Investigation
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2013 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

We identify one attribute of games used in within-subject tests of the inequity aversion model of Fehr and Schmidt (1999), and test its significance. The impact of strategic considerations in games used to evaluate the predictive power of other-regarding preferences is analysed by recovering subject’s inequity aversion parameters in ultimatum and dictator games, with and without strategic consideration. A public good game is employed to test the predictive power of the recovered parameters. Our result indicate that people are by and large driven by reciprocity motives in strategic games and aversion against distributional inequity in non-strategic games. These motives seem to be correlated within games regarding advantageous inequity aversion, but not regarding inadvantageous inequity aversion.

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Keyword [en]
Experimental economics, Behavioural economics, Inequity aversion, Otherregarding preferences, Strategic uncertainty
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URN: urn:nbn:se:uu:diva-203509OAI: oai:DiVA.org:uu-203509DiVA: diva2:636914
Available from: 2013-07-15 Created: 2013-07-15 Last updated: 2013-07-15Bibliographically approved

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