Country Differences in Ultimatum Wage Bargaining with a Real Task: Evidence from Greece, Spain and the UK

By: Aurora García-Gallego (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain)
Nikolaos Georgantzís (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain)
Ainhoa Jaramillo-Gutiérrez (LEE-Department of Economics, Universitat Jaume I-Castellón, ERICES-University of Valencia, Spain)
URL: http://d.repec.org/n?u=RePEc:jau:wpaper:2013/13&r=ltv
We study ultimatum bargaining over the wage that should be paid in order to have a subject perform a given real task. Our results are obtained from experiments run in Greece, Spain and the UK. We find significantly higher wage offers and lower acceptance probabilities in the UK than in the other two countries. Interestingly, the combination of these two effects leads to higher wages in the British pool, without reducing market efficiency as compared to Spain and Greece. Country differences in both employer and employee behavior have a clear gender component.
Keywords: ultimatum bargaining, real task, country differences
JEL: C91 D03 J16 J31
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