Abstract

Punishing norm violations is considered an important motive during rejection of unfair offers in the ultimatum game (UG). The present study investigates the impact of the power to punish norm violations on people’s responses to unfairness and associated neural correlates. In the UG condition participants had the power to punish norm violations, while an alternate condition, the impunity game (IG), was presented where participants had no power to punish norm violations since rejection only reduced the responder’s income to zero. Results showed that unfair offers were rejected more often in UG compared to IG. At the neural level, anterior insula and dorsal anterior cingulate cortex were more active when participants received and rejected unfair offers in both UG and IG. Moreover, greater dorsolateral prefrontal cortex activity was observed when participants rejected than accepted unfair offers in UG but not in IG. Ventromedial prefrontal cortex activation was higher in UG than IG when unfair offers were accepted as well as when rejecting unfair offers in IG as opposed to UG. Taken together, our results demonstrate that the power to punish norm violations affects not only people’s behavioral responses to unfairness but also the neural correlates of the fairness-related social decision-making process.

Highlights

  • Humans are motivated by fairness norm during the decision-making process

  • The results indicated that rejection rates were higher in ultimatum game (UG) than those in impunity game (IG) and increased with the level of unfairness

  • Paired t-tests revealed that fairness ratings for AcceptFair, AcceptUnfair and RejectUnfair trials in IG were lower than those in UG

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Summary

Introduction

Humans are motivated by fairness norm during the decision-making process. When treated unfairly, they are willing to incur cost to punish norm violations. They are willing to incur cost to punish norm violations This behavior appears counterintuitive given standard economic models which assume that humans will always favor the highest personal reward. The responder chooses to either accept the proposal, in which case both players get the amount specified in the proposal, or to Punishment Affects Responses to Unfairness reject the offer where both players receive nothing. Rejection of any offer is counter-intuitive considering standard economic models since any amount, no matter how unfair is still a net gain for the responder. Nearly 50% of the unfair offers below 20% of the total amount were rejected by responders (Güth et al, 1982; Camerer and Thaler, 1995)

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