ABSTRACT

TheBraziliandelegationdecidedthatthelimitedgainsthatwereonthetablein Cancunwerenotworthit. -BrazilianForeignMinisterCelsoAmorim,commentingonthefailed"Cancun Summit"oftheWorldTradeOrganization,October20031

Inrecentyears,socialscientistshavegreatlyexpandedtheirassumptions concerningwhatconstitutesstrategicbehavior.Whereashomuseconomicusis usuallyconceptualizedasaselfish,short-termutilitymaximizer,bothexperimentalevidenceandempiricalresearchdemonstratethat"fairnessconsiderations"mayinfluencethedecisionmakingofagentsinavarietyofstrategic interactions?Specifically,ingame-theoreticexperiments,"proposers"often makemoregenerousoffersthantheoriesthatassumemaximizingbehavior wouldpredict,while"respondents"oftenrejectoffersthattheyconsider "unfair,"evenifthesewouldimprovesomeobjectivefunctionlikeincome. TheabovecitationfromBrazilianforeignministerCelsoAmorimprovidesa neatexpressionofthisresearchfinding.