This paper addresses an anomaly in experimental economics, the rejection of ultimatum offers, and uses a psychological explanation for this essentially economic event. The wounded pride/spite model predicts that informed, knowledgeable respondents may react to small ultimatum offers by perceiving them as unfair, feeling anger, and acting spitefully. Results of a large scale experiment support the model, showing that rejections were most frequent when respondents could evaluate the fairness of their offers and attribute responsibility to offerers. In addition, anger was a better explanation of the rejections than perceptions that the offers were unfair. The discussion addresses the rarely studied but frequently observed emotions that negotiations provoke.
|Original language||English (US)|
|Number of pages||17|
|Journal||Organizational Behavior and Human Decision Processes|
|State||Published - Dec 1996|
ASJC Scopus subject areas
- Applied Psychology
- Organizational Behavior and Human Resource Management