Abstract

Previous studies have shown that social comparison influences individual’s fairness consideration and other-regarding behavior. However, it is not clear how social comparison affects the brain activity in evaluating fairness during asset distribution. In this study, participants, acting as recipients in the ultimatum game, were informed not only of offers to themselves but also of the average amount of offers in other allocator–recipient dyads. Behavioral results showed that the participants were more likely to reject division schemes when they were offered less than the other recipients, especially when the offers were highly unequal. Event-related brain potentials recorded from the participants showed that highly unequal offers elicited more negative-going medial frontal negativity than moderately unequal offers in an early time window (270–360 ms) and this effect was not significantly modulated by social comparison. In a later time window (450–650 ms), however, the late positive potential (LPP) was more positive for moderately unequal offers than for highly unequal offers when the other recipients were offered less than the participants, whereas this distinction disappeared when the other recipients were offered the same as or more than the participants. These findings suggest that the brain activity in evaluating fairness in asset division entails both an earlier (semi-) automatic process in which the brain responds to fairness at an abstract level and a later appraisal process in which factors related to social comparison and fairness norms come into play.

Highlights

  • IntroductionA large number of studies, employing different paradigms, show that people demand fairness in wealth allocation and are willing to sacrifice economic interests to punish unfair behavior (Fehr and Gächter, 2002; Camerer, 2003)

  • Fairness is important in interpersonal interaction and for social stability

  • The main effect of social comparison was significant, F (2,42) = 18.07, ε = 0.69, p < 0.001, η2 = 0.46, suggesting that the rejection rate was higher for upward comparison (0.48 ± 0.25) than for either lateral (0.25 ± 0.20) or downward (0.20 ± 0.19) comparison, as confirmed by post hoc tests, ps < 0.001

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Summary

Introduction

A large number of studies, employing different paradigms, show that people demand fairness in wealth allocation and are willing to sacrifice economic interests to punish unfair behavior (Fehr and Gächter, 2002; Camerer, 2003). In the standard UG, two players have to divide a certain amount of money between them. One player is the allocator and proposes a division of the money; the other is the recipient and can either accept or reject the division scheme. Ample evidence shows that allocators often offer an equal split, and that recipients are unwilling to accept offers that leave them with approximately 20% of the pie or less (Camerer and Thaler, 1995). Studies manipulating the size of the bargaining property and the population of players obtain essentially the same pattern of effects (Hoffman et al, 1996; Henrich et al, 2006)

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