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)
“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 isn’t “at all a good player, in fact I’m perfectly rotten,” is never believed, but dragged into a game where it is discovered, too late, that he spoke the truth.”
—Robert Benchley (1889–1945)