Generosity, Greed and Gambling: What difference doesasymmetric information in bargaining make?

We analyze the effects of asymmetric information concerning thesize of a pie on proposer behavior in three different bargaining situations:the ultimatum game, the Yes-No-game and the dictator game.Our data show that (a) irrespective of the information condition, proposergenerosity increases with responder veto power, (b) informedproposers in the ultimatum game try to exploit their superior informationand hide their greed by a seemingly fair offer, and (c) uninformedproposers in the dictator game exhibit gambling behavior by askingfor more than potentially is at stake. While the results of our experimentalanalysis are interesting as such, they may also yield interestingpractical implications.