The paper attempts to test the following hypotheses: (i) Are people generally self interested, (ii) If people tend to be generous, what is the motive, i.e., either they fear rejection or do they have a preference for fairness, and (iii) Is there any behavioral difference in bargaining between males and females. In this respect, we conduct an ultimatum bargaining experiment in a “same gender pairings” setting in International Islamic University Islamabad, Pakistan. In order to test the first hypothesis we look at the overall offers made by the proposers and the rejection rates of the responders. In order to test the second hypothesis we compare the offers that proposers anticipate will be accepted by the responders and the offers they actually make. If actual offer exceeds the minimum acceptable offer anticipated by the proposer, we conclude that he is fair minded. Otherwise, he is being generous due to fear of rejection. In order to test the third hypothesis, we compare the offers and responses made by males and females in this game. At the start of this study, we were of the view that the people of an Islamic society, in general, and students of International Islamic University, Islamabad, in particular, would show a greater concern for fairness rather than fear of rejection. As is evident, the results of this study prove these views wrong. Further, this fear of rejection was very realistic, particularly, in case of males where the rejection rates for unfair offers were very high.
