Individual and Group Behavior in the Ultimatum Game: Are Groups More 'Rational' Players?

Gary Bornstein & Ilan Yaniv

This paper reports two ultimatum game experiments comparing the behavior of individuals with that of three-person groups. Group members conducted a short face-to-face discussion in order to decide, as a collective, on a proposed division or on whether to accept or reject a proposal. Both experiments found that groups offered significantly less than individuals. But, as indicated by the low rejection rate in both treatments, groups were also willing to accept less.

September, 1997
Published in: 
Experimental Economics 1 (1998), 101-108