Student Name: Daxun Xu
Student ID: 440510101
Word count: 744 words
Introduction
Ultimatum game has received extensive interests in behavioural economics. It is a common social phenomenon, i.e. customer asks for a discount price on certain goods or buys them somewhere else; employees want better salary package or resign for better job. Most of the studies are under gain framework, which means the accepters can either something or nothing. Meanwhile, it is suggested that the framing of the study (gain and loss) could affect the outcome (ATHK1001, 2014). Zhou and Wu (2011) have conducted a study which asked participants to spilt either a gain or a loss of 10 Chinese Yuan in both gain and loss frames to investigate the effects of framing and explanations of the outcomes.
Their study consists of three experiments while experiment 1 is made of two sub-experiments. They found that loss framing has higher rejection rates in all situations and they conclude that loss frame for the UG was like a negatively framed negotiation which makes it harder to come to a compromise (Zhou and Wu, 2011). They suspected that loss framing is associated with unfairness. To examine their finding, ATHK 1001 has conducted a similar survey to validate Zhou and Wu’s study.
Hypotheses
A series of null hypotheses have been used. The first hypothesis (H1) proposed that gain frame condition makes proposers to make more unfair offers. The second hypothesis (H2) postulates that very unfair offers are more likely to be accepted in the loss frame condition. While the last hypothesis (H3) assumed that proposers will rate acceptors as more likely to accept their offers in gain frame.
Methodology
Samples
A total 793 participants (485 female, 308 male; mean age 20.6 years) coming from ATHK1001 class and the other class have been selected in the
