Participation costs for responders can reduce rejection rates in ultimatum bargaining

The data reported in this paper show that in an ultimatum mini-game rejection rates of low offers are significantly reduced if participation for responders is voluntary but costly. A possible explanation based on cognitive dissonance and loss aversion is offered.

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Year of publication:	2009
Authors:	Wichardt, Philipp C. ; Schunk, Daniel ; Schmitz, Patrick W.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 103.2009, 1, p. 33-35
Publisher:	Elsevier
Keywords:	Cognitive dissonance Loss aversion Participation costs Sunk costs Ultimatum game

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005270401