In the context of an allocation game, this paper analyses the proposer´s reported beliefs about the responder's willingness to accept (or reject) the proposed split of the pie. The proposer´s beliefs are elicited via a quadratic scoring rule. An econometric model of the proposer´s beliefs is estimated. The estimated proposer's beliefs are then compared with the actual responder's choices. As a result of this comparison, we observe that the proposer tends to underestimate the empirical acceptance probability, especially when the slice of the pie allocated to the proposer is large.
|Number of pages||11|
|Publication status||Published - 2014|
|Name||Jena Economic Research Papers|
|Publisher||Max Planck Institute of Economics|