Minimally Acceptable Altruism and the Ultimatum Game
34 Pages Posted: 14 Jul 2006
Date Written: May 23, 2006
I suppose that people react with anger when others show themselves not to be minimally altruistic. With heterogeneous agents, this can account for the experimental results of ultimatum and dictator games. Moreover, it can account for the surprisingly large fraction of individuals who offer an even split, with parameter values that are more plausible than those required to explain outcomes in these experiments with the models of Levine (1998), Fehr and Schmidt (1999), Dickinson (2000), and Bolton and Ockenfels (2000).
JEL Classification: D64, D63, C72, A13
Suggested Citation: Suggested Citation