Fairness in competitive games such as the Ultimatum Game is often defined theoretically. According to some of the literature, in which fairness is determined only based on resource allocation, a proposal splitting resources evenly (i.e., 5:5) is generally assumed as fair, and minimal deviation...

This paper studies intertemporal social preferences. We introduce intertemporal dictator and ultimatum games where players decide on the timing of monetary payoffs. The setting is twodimensional rather than one-dimensional, in the sense that inequalities can arise in the time as well as in the...

The Supreme Court's recent decision in Kelo v. New London allows the use of eminent domain to facilitate private economic development. While the court's condition for allowing takings was highly expansive, there may be a market failure that warrants state intervention when parcels of land need...

We explore the interaction between fairness attitudes and reference dependence both theoretically and experimentally. Our theory of fairness behavior under reference-dependent preferences in the context of ultimatum games, defines fairness in the utility domain and not in the domain of dollar...

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...