Partner Selection and the Division of Surplus: Evidence from Ultimatum and Dictator Games

Offers can increase in the ultimatum game if the recipient can select her proposer, both with non-competitive selection, where the recipient decides whether she wants to play with a single potential proposer, and even more so with competitive selection, where the recipient decides which of two potential proposer she plays with. Selection is done on the basis of non-binding communication about how much a potential proposer will offer if selected. The effect is driven by the recipient's use of prior promise as a factor determining offer rejection; an offer is rejected with greater probability if the promise made the selected proposer is higher, ceteris paribus. Consequently, selection power carries no benefits in the dictator game.