8/2006
April
A Little Behavioralism Can Go a Long Way
 
Ken Binmore, Joe Swierzbinski


This paper considers the data from several experiments, including both the Ultimatum Game and a new experiment on Rubinstein's bargaining model. It is shown that one does not need to follow the behavioral economists in attributing large deviations from predictions based on neoclassical reasoning with money payoffs in order to explain the data.

 
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