Levitt (2007)- ”What do laboratory experiments measuring social preferences reveal about the real world?. Flashcards
What is the ultimatum game
A two-stage game where two people, a proposer and a
responder, bargain over a fixed amount of money. In the first stage, the proposer offers a split of the money, and in the second stage, the responder decides to accept or reject the offer. If accepted, each player receives money
according to the
offer; if rejected, each player receives nothing.
What does thestandardeconomicmodelpredict of the ultimatum game?
Proposer offers the lowest amount to the responder possible
Responder accepts any offer above 0
What is the aim of the paper?
To find out if how people behave in the lab is similar to how they will in real life.
Why might labarotary experiments differ to real-world behaviour?
Scrutiny- makes people behave differently
