Fair ultimatum: an experimental study of the Myerson value∗

We conduct a laboratory experiment to test the empirical behavior of the bid-and-propose mechanism, defined in Navarro and Perea (2005). This mechanism implements the Myerson value for networks, and therefore its outcome posesses fairness properties. Since the bid-and-propose mechanism includes an ultimatum game in the last stage, we design an experiment with several treatments, where subjects also play the simple ultimatum game. In order to check whether subjects behave fairly in the sense of Myerson or they are inequity averse, we compare results from games with symmetric and asymmetric outside options