The ultimatum game is a game often played in economic experiments in which two players interact to decide how to divide a sum of money that is given to them. The first player proposes how to divide the sum between the two players, and the second player can either accept or reject this proposal. If the second player rejects, neither player receives anything. If the second player accepts, the money is split according to the proposal. The game is played only once so that reciprocation is not an issue.
Other articles related to "ultimatum game, game":
... Consider the ultimatum game, where one player proposes to split a dollar with another ... Since the only choice the second player has at each of these points in the game is to choose between something and nothing, one can expect that the second will accept ... the unique subgame perfect equilibrium of the Ultimatum Game ...
... In the "competitive ultimatum game" there are many proposers and the responder can accept at most one of their offers With more than three (naïve) proposers the responder is usually offered ... In the "ultimatum game with tipping", a tip is allowed from responder back to proposer, a feature of the trust game, and net splits tend to be more equitable ... The "reverse ultimatum game" gives more power to the responder by giving the proposer the right to offer as many divisions of the endowment as they like ...
Famous quotes containing the words game and/or ultimatum:
“My first big mistake was made when, in a moment of weakness, I consented to learn the game; for a man who can frankly say I do not play bridge is allowed to go over in the corner and run the pianola by himself, while the poor neophyte, no matter how much he may protest that he isnt at all a good player, in fact Im perfectly rotten, is never believed, but dragged into a game where it is discovered, too late, that he spoke the truth.”
—Robert Benchley (18891945)
“[The health plan was] constructed to be deconstructed. [Instead,] it was described as an ultimatum by our opponents and therefore used to undermine the process of reaching agreement.”
—Hillary Rodham Clinton (b. 1947)