The Impact of Social Distance and Communication on Subjects’ Behavior in Ultimatum Games

Table of Contents

1 Introduction

2 Theory

2.1 Ultimatum Game by Güth et al. 1982

2.1.1 Definition

2.1.2 The Framework of the Game

2.1.3 Predicted Subject Behavior

2.2 The Strategy Method

3 A Collection of Ultimatum Game Experiments

3.1 Experimental Results of Thirty Years of Research

3.2 Contradicting Material Opportunism

3.3 Subjects’ Reasoning in the Game

3.4 Subjects’ Motives for Contradicting Material Opportunism

4 The Impact of Social Distance on Subjects’ Behavior in Ultimatum Games

4.1 The Concept of Social Distance

4.1.1 The Term

4.1.2 Social Distance along Dimensions

4.2 Social Distance in the Ultimatum Game

4.2.1 A Procedure for Inducing Social Distance in Experimental Games

4.2.2 The Influence of Social Distance on Subjects’ Behavior

5 The Impact of Communication on Subjects’ Behavior in Ultimatum Games

5.1 The Concept of Communication

5.1.1 The Term

5.1.2 Decreased Social Distance Between Communicators

5.2 Communication in the Ultimatum Game

5.2.1 The Nature of Conversation between Subjects

5.2.2 The Impact of Pre-Play Communication on Subjects’ Behavior

6 Results and Discussion

6.1 Results

6.2 Discussion

6.2.1 Incentives Elicited by Social Distance Variations and Communication

6.2.2 Methodological Issues

7 Conclusion

Research Objectives and Themes

This thesis examines the influence of social factors, specifically social distance and communication, on player behavior in Ultimatum Game experiments. It investigates whether the common assumptions of material opportunism and pure rationality in economic game theory can be reconciled with empirical evidence that highlights social, motivational, and emotional complexities in human decision-making.

• Theoretical foundations of the Ultimatum Game and the Strategy Method.
• The impact of social distance on bargaining outcomes and fairness perceptions.
• The role of pre-play communication in reducing social distance and influencing cooperation.
• Empirical evaluation of experimental findings regarding proposer and responder behavior.
• Methodological considerations and the trade-off between experimental control and realism.

Excerpt from the Book

Summary of Chapters

1 Introduction: Introduces the Ultimatum Game as a primary tool in experimental economics and outlines the thesis's focus on the role of social distance and communication in bargaining.

2 Theory: Defines the core concepts of the Ultimatum Game, the subgame perfect equilibrium, and the Strategy Method used to elicit responder strategies.

3 A Collection of Ultimatum Game Experiments: Reviews thirty years of experimental data, addressing why players frequently deviate from material opportunism through fairness concerns and strategic reasoning.

4 The Impact of Social Distance on Subjects’ Behavior in Ultimatum Games: Analyzes how perceived emotional proximity and identifiability affect bargaining outcomes, utilizing social-discounting procedures.

5 The Impact of Communication on Subjects’ Behavior in Ultimatum Games: Explores how various forms of pre-play communication reduce social distance and alter the strategic landscape for proposers and responders.

6 Results and Discussion: Synthesizes empirical findings, highlighting that while communication often promotes generosity, its effects on responder thresholds are nuanced and dependent on content.

7 Conclusion: Summarizes the thesis findings and reflects on the necessity of integrating social realism into economic experiments to better model field-like negotiation settings.

Key Terms

Ultimatum Game, Social Distance, Communication, Material Opportunism, Fairness, Rationality, Strategy Method, Altruism, Reciprocity, Inequity Aversion, Bargaining, Behavioral Economics, Anonymity, Identifiability, Subgame Perfect Equilibrium

Frequently Asked Questions

What is the core subject of this thesis?

This work explores how social factors like social distance and communication influence players' decision-making processes in Ultimatum Game experiments, challenging traditional economic models of pure self-interest.

What are the primary themes analyzed in the research?

The research centers on the interplay between strategic behavior and social motives, specifically looking at how identifiability, emotional proximity, and various communication protocols (strategic vs. social) impact bargaining.

What is the main research question of this study?

The study seeks to answer: How does social distance and communication influence subjects’ behavior in the Ultimatum game?

Which scientific methods are primarily utilized?

The thesis conducts a selective review and meta-analysis of empirical experimental studies, specifically comparing laboratory outcomes derived from the standard Ultimatum Game and the Strategy Method.

What topics are discussed in the main body of the text?

The text covers the historical and theoretical background of the Ultimatum Game, the definition and impact of social distance, the role of face-to-face and pre-play communication, and the synthesis of results regarding proposer and responder behavior.

Which keywords best characterize this research?

Key terms include Ultimatum Game, Social Distance, Communication, Fairness, Inequity Aversion, and Behavioral Economics.

How does social distance impact proposer behavior?

The evidence suggests that as social distance decreases, proposers tend to make more generous offers, partly due to increased feelings of responsibility or a desire to avoid appearing selfish.

Does pre-play communication always lead to higher acceptance?

Not necessarily. While communication generally encourages more generous offers, responders’ acceptance thresholds often remain stable or even increase in settings where strategic, game-related communication is allowed.