Unfairness, Anger, and Spite: Emotional Rejections of Ultimatum Offers

doi:10.1006/obhd.1996.0100

Organizational Behavior and Human Decision Processes

Volume 68, Issue 3, December 1996, Pages 208-224

https://doi.org/10.1006/obhd.1996.0100 Get rights and content

Abstract

This paper addresses an anomaly in experimental economics, the rejection of ultimatum offers, and uses a psychological explanation for this essentially economic event. The wounded pride/spite model predicts that informed, knowledgeable respondents may react to small ultimatum offers by perceiving them as unfair, feeling anger, and acting spitefully. Results of a large scale experiment support the model, showing that rejections were most frequent when respondents could evaluate the fairness of their offers and attribute responsibility to offerers. In addition, anger was a better explanation of the rejections than perceptions that the offers were unfair. The discussion addresses the rarely studied but frequently observed emotions that negotiations provoke.

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^☆: An earlier version of this paper was presented at the Academy of Management meetings in Dallas and the Economic Science Association meetings in Tucson, both in 1994. We appreciate the extremely helpful comments that Max Bazerman, Dan Brass, Charalambos Iacovou, Greg Oldham, Archana Vepa, and two anonymous reviewers provided on an earlier version of this paper, as well as Jim Schmidtke's professional assistance with the data and the financial support of the Social Sciences and Humanities Research Council of Canada. Address correspondence and reprint requests to J. Keith Murnighan, Northwestern University, KGSM/OB/Leverone/360, 2001 N. Sheridan Road, Evanston, IL 60208.

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Regular ArticleUnfairness, Anger, and Spite: Emotional Rejections of Ultimatum Offers☆

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Regular Article
Unfairness, Anger, and Spite: Emotional Rejections of Ultimatum Offers☆