This paper examines the effects of strategic delegation in a simple ultimatum game experiment.Our main concern is to examine the way delegation alter the way players think about the game and play it.Specifically, we show that a delegate's offer is more easily accepted by the responder as he is less keen to punish both the principle and the agent.We also show that unobserved delegation by the responder lowers his share as his agent is perceived to be more willing to accept tough offers.These effects identify an additional explanation to the delegation phenomena.
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Fershtman et al. (2001) studied this question.
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