Backward induction is a widely accepted principle for predicting behavior in sequential games. In the classic example of the "centipede game'', however, players frequently violate this principle. An alternative is a dynamic level-k model, where players choose a rule from a rule hierarchy. The...

People exhibit peer-induced fairness concerns when they look to their peers as a reference to evaluate their endowments. We analyze two independent ultimatum games played sequentially by a leader and two followers. With peer-induced fairness, the second follower is averse to receiving less than...

Fair Process research has shown that people care not only about outcomes, but also about the process that produces these outcomes. For a decision process to be seen as fair, the people affected must have the opportunity to give input and possibly to influence the decision, and the decision...