What is considered to be fair depends on context-dependent expectations. Using a modified version of the Ultimatum Game, we demonstrate that both fair behavior and perceptions of fairness depend upon beliefs about what one ought to do in a situation-that is, upon normative expectations. We manipulate such expectations by creating informational asymmetries about the offer choices available to the Proposer, and find that behavior varies accordingly. Proposers and Responders show a remarkable degree of agreement in their beliefs about which choices are considered fair. We discuss how these results fit into a theory of social norms.

We measured the beliefs and behavior of third parties who were given the opportunity to add to or deduct from the payoffs of individuals who engaged in an economic bargaining game under different social contexts. Third parties rewarded bargaining outcomes that were equal and compensated victims of unfair bargaining outcomes rather than punishing perpetrators, but were willing to punish when compensation was not an available option. Beliefs of whether unequal bargaining outcomes were fair differed based on the normative context, but actual punishment, compensation, and rewarding behavior did not. This paper makes a contribution to the literature on informal mechanisms of social norm enforcement by comparing negative sanctions, positive sanctions, and compensation behavior by third parties. Disciplines Behavioral Economics | Economics | Personality and Social Contexts | Social Psychology CommentsAt the time of publication, author Alex Chavez was affiliated with the University of Michigan. Currently, he is a faculty member at the Behavioral Ethics Lab at the University of Pennsylvania. Abstract. We measured the beliefs and behavior of third parties who were given the opportunity to add to or deduct from the payoffs of individuals who engaged in an economic bargaining game under different social contexts. Third parties rewarded bargaining outcomes that were equal and compensated victims of unfair bargaining outcomes rather than punishing perpetrators, but were willing to punish when compensation was not an available option. Beliefs of whether unequal bargaining outcomes were fair differed based on the normative context, but actual punishment, compensation, and rewarding behavior did not. This paper makes a contribution to the literature on informal mechanisms of social norm enforcement by comparing negative sanctions, positive sanctions, and compensation behavior by third parties.

Using an economic bargaining game, we tested for the existence of two phenomena related to social norms, namely norm manipulation -the selection of an interpretation of the norm that best suits an individual -and norm evasion -the deliberate, private violation of a social norm. We found that the manipulation of a norm of fairness was characterized by a self-serving bias in beliefs about what constituted normatively acceptable behaviour, so that an individual who made an uneven bargaining offer not only genuinely believed it was fair, but also believed that recipients found it fair, even though recipients of the offer considered it to be unfair. In contrast, norm evasion operated as a highly explicit process. When they could do so without the recipient's knowledge, individuals made uneven offers despite knowing that their behaviour was unfair. University of PennsylvaniaAbstract. Using an economic bargaining game, we tested for the existence of two phenomena related to social norms, namely norm manipulation -the selection of an interpretation of the norm that best suits an individual -and norm evasion -the deliberate, private violation of a social norm. We found that the manipulation of a norm of fairness was characterized by a self-serving bias in beliefs about what constituted normatively acceptable behavior, so that an individual who made an uneven bargaining offer not only genuinely believed it was fair, but also believed that recipients found it fair, even though recipients of the offer considered it to be unfair. In contrast, norm evasion operated as a highly explicit process. When they could do so without the recipient's knowledge, individuals made uneven offers despite knowing that their behavior was unfair.

Subjects communicated prior to playing trust games; the richness of the communication media and the topics of conversation were manipulated. Communication richness failed to produce significant differences in firstmover investments. However, the topics of conversation made a significant difference: the amounts sent were considerably higher in the unrestricted communication conditions than in the restricted communication and no-communication conditions. Most importantly, we find that first-movers' expectations of second-movers' reciprocation are influenced by communication and strongly predict their levels of investment.

The sensitivity to fairness undergoes relevant changes across development. Whether such changes depend on primary inequity aversion or on sensitivity to a social norm of fairness is still debated. Using a modified version of the Ultimatum Game that creates informational asymmetries between Proposer and Responder, a previous study showed that both perceptions of fairness and fair behavior depend upon normative expectations, i.e., beliefs about what others expect one should do in a specific situation. Individuals tend to comply with the norm when risking sanctions, but disregard the norm when violations are undetectable. Using the same methodology with children aged 8–10 years, the present study shows that children's beliefs and behaviors differ from what is observed in adults. Playing as Proposers, children show a self-serving bias only when there is a clear informational asymmetry. Playing as Responders, they show a remarkable discrepancy between their normative judgment about fair procedures (a coin toss to determine the offer) and their behavior (rejection of an unfair offer derived from the coin toss), supporting the existence of an outcome bias effect. Finally, our results reveal no influence of theory of mind on children's decision-making behavior.