OPPORTUNISM AND THE ROLE OF FINANCIAL INCENTIVES: AN EXPERIMENTAL ANALISYS BASED ON GAME THEORY

This data set shows the result of an ab experiment based on game theory. We conducted a laboratory experiment based on game theory, using a modified version of the ultimatum game, where proposers had the opportunity to manipulate the responder’s beliefs by the use of “hide behind the small cake” strategy. Our experiment took advantage of the fact that Proposers were informed about the initial endowment, while Respondents were not. In our experiment, the Proposer had the opportunity to deceive by making their offer appear fairer than it really was and without incurring any penalty. The Respondent was only aware of the probability of each possible endowment, which were, in Brazilian Reais: $10 with 0.5 probability; $20 with 0.25 probability; $30 with 0.25 probability. We use the higher probability of a $10 endowment in order to create more opportunities for the Proposer to incur in opportunism if he/she wanted to. Bearing in mind that the Respondent had the power of rejection in the game, self-regarding Proposer would want the Respondent to believe that the size of the pie was equal to $10, the lowest amount in the game. Thus, we investigated the “hide behind a small cake effect” using an ultimatum game framework with imperfect information.