By Abdul Qahir, Syed MunawarShah, Syed Hussain Shah
Abstract
This paper identifies fairness and reputations in the
ultimatum game by conducting laboratory experiments on 48 students from
different faculties at BUITEMS. This paper explores the relationship between
proposer’s offer and responder’s decision. This paper covers two experiments
(Reputation experiment with low amount of money and Reputation experiment with
high amount of money). Reputation experiments showed that majority of offers
were fair and were accepted by respondents. The implication is very important
and helpful for contracts on Islamic Shari’ah which claims that the contracts
are based on fairness. This paper found that higher the offers from proposers,
higher will be the acceptance rate and vice versa.
Comments are closed.