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 chess-board is the world; the pieces are the phenomena of the universe; the rules of the game are what we call the laws of Nature. The player on the other side is hidden from us. We know that his play is always fair, just, and patient. But also we know, to our cost, that he never overlooks a mistake, or makes the smallest allowance for ignorance.”
—Thomas Henry Huxley (1825–1895)