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)
“The family environment in which your children are growing up is different from that in which you grew up. The decisions our parents made and the strategies they used were developed in a different context from what we face today, even if the “content” of the problem is the same. It is a mistake to think that our own experience as children and adolescents will give us all we need to help our children. The rules of the game have changed.”
—Lawrence Kutner (20th century)