Bargaining under Surveillance: Evidence from a Three-Person Ultimatum Game

Saaksvuori, Lauri and Ramalingam, Abhijit (2015) Bargaining under Surveillance: Evidence from a Three-Person Ultimatum Game. Journal of Economic Psychology, 51. pp. 66-78. ISSN 0167-4870

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    This paper investigates how the transparency of decision-making affects preferences over distributional outcomes. We also examine what motivates individuals to voluntarily invest economic resources to monitor decision-making processes. We find that third-party monitoring does not affect distributional outcomes in a three-person ultimatum game. Our results show that a large majority of individuals is willing to pay for a right to monitor decision-making processes despite pecuniary incentives to the contrary. We observe that third-parties are over-confident in believing that an opportunity to scrutinize decision-making processes changes distributional outcomes for their own benefit. Our results suggest that people may over-estimate the effect of transparent decision-making on economic outcomes.

    Item Type: Article
    Uncontrolled Keywords: bargaining, communication,distributional preferences,experiment,negotiations,surveillance
    Faculty \ School: Faculty of Social Sciences > School of Economics
    Depositing User: Pure Connector
    Date Deposited: 21 Oct 2015 16:00
    Last Modified: 21 Mar 2019 11:20
    DOI: 10.1016/j.joep.2015.08.007

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