Modelling Transactions with Ultimatum Games: An Experiment on Certification
U of Oxford Economics Discussion Paper No. 87
27 Pages Posted: 5 Dec 2002
Date Written: February 2002
Ultimatum games have been extensively used in experimental studies. By studying the consequences that restrictions shared by ultimatum games have in subject's behaviour, this paper argues that some results are falsified by design constraints. This paper also presents a taxonomy of certification, and provides experimental evidence supporting the commonly observed use of rankings in certificates, as well as the restriction of awareness by certifiers to increase revenue. Regulatory implications are discussed.
Keywords: Ultimatum, Bargaining, Experiments, Certification, Asymmetric Information
JEL Classification: C72, C78, C90, D18, D63, D82, L15, L86
Suggested Citation: Suggested Citation