Individual and Group Behavior in the Ultimatum Game: Are Groups More 'Rational' Players?

Abstract:

This paper reports two ultimatum game experiments comparing the behavior of individuals with that of three-person groups. Group members conducted a short face-to-face discussion in order to decide, as a collective, on a proposed division or on whether to accept or reject a proposal. Both experiments found that groups offered significantly less than individuals. But, as indicated by the low rejection rate in both treatments, groups were also willing to accept less.

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