TY  - RPRT
        AU  - Hennig-Schmidt, Heike
AU  - Irlenbusch, Bernd
AU  - Rilke, Rainer Michael
AU  - Walkowitz, Gari
        TI  - Self-Serving Use of Equity Rules in Bargaining with Asymmetric Outside Options
        PY  - 2013/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7625
        UR  - https://www.iza.org/publications/dp7625
        AB  - We experimentally investigate multiple notions of equity in ultimatum bargaining with asymmetric outside options. Building on the generalized equity principle formulated by Selten (1978), we derive three different equity rules that can explain 43% of all offers. Our within-subject design further allows us to show that proposers use different equity rules and apply them in a self-serving manner. They tend to follow the rules that suggest the highest payoff for them. Responders exhibit a similar pattern of behavior. Combined, these tendencies lead to high inefficiencies due to frequent rejections.
        KW  - Outside Options
KW  - Equity Principle
KW  - Ultimatum Game
        ER  -