Hennig-Schmidt, Heike; Irlenbusch, Bernd; Rilke, Rainer … - Institute for the Study of Labor (IZA) - 2013
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...