Year: 1997
Type: book-chapter
Abstract: Economists have invented a game: the ultimatum game. The people who run the game give some money, on a provisional basis, to two players. The first player is instructed to offer some part of the money to the second player. If the second player accepts that amount, he can keep what is offered, and the first player gets to keep the rest. But if the second player rejects the offer, neither player gets anything. No bargaining is allowed. Both players are informed that these are the rules. Using standard assumptions about rationality, self-interest, and choice, economists predict that the first player should offer a penny and the second player should accept.
Source: Oxford University Press eBooks
Author: Cass R Sunstein
Institution: Harvard University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1848653928