Inequality Aversion and Stochastic Decision- making: Experimental Evidence from Zimbabwean Villages after Land Reform.
Inequality considerations are a motive for making positive o¤ers in the Ultimatum Game and rejecting small ones, but decision error could have the same e¤ect. I …nd evidence for both of these considerations and a di¤erent relative importance amongst Zimbabwean villagers, of whom some resettled after...
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| Format: | Working paper |
| Language: | English |
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GPRG
2006
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| _version_ | 1797095008102252544 |
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| author | Kohler, S |
| author_facet | Kohler, S |
| author_sort | Kohler, S |
| collection | OXFORD |
| description | Inequality considerations are a motive for making positive o¤ers in the Ultimatum Game and rejecting small ones, but decision error could have the same e¤ect. I …nd evidence for both of these considerations and a di¤erent relative importance amongst Zimbabwean villagers, of whom some resettled after a government organized land reform during the 1980s. Resettled villagers have higher inequality aversion and lower decision error than those who live in traditional villages but, after accounting for different levels of inequality aversion, the di¤erence in decision error between both groups of villagers is no longer signi…cant. There are no gender di¤erences in preferences. The model estimated was …rst used by De Bruyn and Bolton (2004) on a large set of bargaining data but the best …t of 64 percent overall coincidence of observed and predicted behavior is achieved for a different 'symmetric' speci…cation of inequality aversion in the model. As the use of …eld data is a recent development in experimental economics, I reestimate the model applied to the Zimbabwean data on the laboratory Ultimatum Game data of Roth et al. (1991) and further …eld data from Henrich et al. (2005). Estimates are compared comprehensively. |
| first_indexed | 2024-03-07T04:21:52Z |
| format | Working paper |
| id | oxford-uuid:cb4963c0-a0a4-4e52-93a6-150c8fc6853c |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T04:21:52Z |
| publishDate | 2006 |
| publisher | GPRG |
| record_format | dspace |
| spelling | oxford-uuid:cb4963c0-a0a4-4e52-93a6-150c8fc6853c2022-03-27T07:13:44ZInequality Aversion and Stochastic Decision- making: Experimental Evidence from Zimbabwean Villages after Land Reform.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:cb4963c0-a0a4-4e52-93a6-150c8fc6853cEnglishDepartment of Economics - ePrintsGPRG2006Kohler, SInequality considerations are a motive for making positive o¤ers in the Ultimatum Game and rejecting small ones, but decision error could have the same e¤ect. I …nd evidence for both of these considerations and a di¤erent relative importance amongst Zimbabwean villagers, of whom some resettled after a government organized land reform during the 1980s. Resettled villagers have higher inequality aversion and lower decision error than those who live in traditional villages but, after accounting for different levels of inequality aversion, the di¤erence in decision error between both groups of villagers is no longer signi…cant. There are no gender di¤erences in preferences. The model estimated was …rst used by De Bruyn and Bolton (2004) on a large set of bargaining data but the best …t of 64 percent overall coincidence of observed and predicted behavior is achieved for a different 'symmetric' speci…cation of inequality aversion in the model. As the use of …eld data is a recent development in experimental economics, I reestimate the model applied to the Zimbabwean data on the laboratory Ultimatum Game data of Roth et al. (1991) and further …eld data from Henrich et al. (2005). Estimates are compared comprehensively. |
| spellingShingle | Kohler, S Inequality Aversion and Stochastic Decision- making: Experimental Evidence from Zimbabwean Villages after Land Reform. |
| title | Inequality Aversion and Stochastic Decision- making: Experimental Evidence from Zimbabwean Villages after Land Reform. |
| title_full | Inequality Aversion and Stochastic Decision- making: Experimental Evidence from Zimbabwean Villages after Land Reform. |
| title_fullStr | Inequality Aversion and Stochastic Decision- making: Experimental Evidence from Zimbabwean Villages after Land Reform. |
| title_full_unstemmed | Inequality Aversion and Stochastic Decision- making: Experimental Evidence from Zimbabwean Villages after Land Reform. |
| title_short | Inequality Aversion and Stochastic Decision- making: Experimental Evidence from Zimbabwean Villages after Land Reform. |
| title_sort | inequality aversion and stochastic decision making experimental evidence from zimbabwean villages after land reform |
| work_keys_str_mv | AT kohlers inequalityaversionandstochasticdecisionmakingexperimentalevidencefromzimbabweanvillagesafterlandreform |