Reanalyzing ultimatum bargaining - Comparing nondecreasing curves without shape constraints

Duncan K.H. Fong, Scott E. Pammer, Steven F. Arnold, Gary E. Bolton

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

We employ a hierarchical Bayesian method with exchangeable prior distributions to estimate and compare similar nondecreasing response curves. A Dirichlet process distribution is assigned to each of the response curves as a first stage prior. A second stage prior is then used to model the hyperparameters We define parameters which will be used to compare the response curves. A Markov chain Monte Carlo method is applied to compute the resulting Bayesian estimates. To illustrate the methodology, we re-examine data from an experiment designed to test whether experimenter observation influences the ultimatum game. A major restriction of the original analysis was the shape constraint that the present technique allows us to greatly relax. We also consider independent priors and use Bayes factors to compare various models.

Original languageEnglish (US)
Pages (from-to)423-430
Number of pages8
JournalJournal of Business and Economic Statistics
Volume20
Issue number3
DOIs
StatePublished - 2002

All Science Journal Classification (ASJC) codes

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

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