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Maroš Servátka and Radovan Vadovič
''Unequal outside options in the lost wallet game''
( 2009, Vol. 29 No.4 )
Experimental evidence suggests the size of the foregone outside option of the first mover does not affect the behavior of the second mover in the lost wallet game. In this paper we experimentally compare the behavior of subjects when they face an outside option with unequal payoffs, i.e., the first mover gets 10 and the second mover gets 0, and when they face an outside option with equal payoffs, i.e., both get 5. Consistent with the most of the literature we do not find a significant difference in behavior of second movers.
Keywords: Experimental economics, fairness, inequality, lost wallet game, outside option
JEL: C9 - Design of Experiments: General
Manuscript Received : Oct 15 2009 Manuscript Accepted : Nov 11 2009

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