Accuracy of proposers' beliefs in an allocation-type game

In the context of an allocation game, this paper analyses the proposer´s reported beliefs about the responder´s willingness to accept (or reject) the proposed split of the pie. The proposer´s beliefs are elicited via a quadratic scoring rule. An econometric model of the proposer´s beliefs is estimated. The estimated proposer´s beliefs are then compared with the actual responder´s choices. As a result of this comparison, we observe that the proposer tends to underestimate the empirical acceptance probability, especially when the slice of the pie allocated to the proposer is large.