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The canonical bargaining game in economics is the ultimatum game, played by tens of thousands of students around the world over the past three decades. In the ultimatum game, first studied by Werner Güth, Rolf Schmittberger, and Bernd Schwarze (1982), the " proposer " proposes how to split a pie between herself and a " responder. " Then the responder(More)
—Recent literature presents evidence that men are more competitively inclined than women. Since top-level careers usually require competitiveness , competitiveness differences provide an explanation for gender gaps in wages and differences in occupational choice. A natural question is whether women are born less competitive or whether they become so through(More)
In many settings, individuals are confronted with decision problems that involve information relevant to their self-image. This paper uses an experiment to explore whether the self-relevance of information influences information processing. The experiment implements two information processing tasks that are identical from a theoretical perspective, but(More)
This paper studies efficient allocation of resources in an economy in which agents are initially heterogeneous with regard to their wealth levels and whether they have productive ideas or not. An agent with an idea can start a business that generates random returns. Agents have private information about (1) their initial types, (2) how they allocate their(More)
We study the nature versus nurture distinction in bargaining behavior across gender, by observing the negotiation culture in matrilineal and patriarchal societies. Combining data from a laboratory experiment and a natural field experiment conducted in matrilineal and patriarchal societies permits us to explore how culture affects bargaining behavior. One(More)
People often demand a greater price when selling goods that they own than they would pay to purchase the same goods-a well-known economic bias called the endowment effect. The endowment effect has been found to be muted among experienced traders, but little is known about how trading experience reduces the endowment effect. We show that when selling,(More)
It was previously shown by fMRI studies that unfair offers during an ultimatum bargaining game activate regions in the brain associated with emotions and conflict, leading to decisions inconsistent with standard economic theory. The temporal dynamics of emotional processing and mental attributes were not clear due to the coarse temporal resolution in those(More)
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