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.
Read more about Ultimatum Game: Equilibrium Analysis, Experimental Results, Explanations, Sociological Applications, History, Variants
Famous quotes containing the words ultimatum and/or game:
“[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)
“There are no accidents, only nature throwing her weight around. Even the bomb merely releases energy that nature has put there. Nuclear war would be just a spark in the grandeur of space. Nor can radiation “alter” nature: she will absorb it all. After the bomb, nature will pick up the cards we have spilled, shuffle them, and begin her game again.”
—Camille Paglia (b. 1947)