International Ultimatum Bargaining Game on Dividing up an Inheritance Successfully- Difference between Germany and the United States

Abstract

We conducted a three-person Ultimatum Bargaining Game with more than 500 US and European participants. They were asked to split up an inheritance of 1,200 EUR between them. In our basic version the first person proposes one out of 18 split-ups, the second person has the right to accept or reject the proposal, and the third person has no rights at all. As proposer, 42 % vote for an Equal Split, only 9 % for the Homo Oeconomicus. As respondent, the notions of fairness and inequality aversion dominate decision making. US-Americans are more equality oriented than Europeans. Various characteristics of the participants are found to be significant.