The Ultimatum Game: Are Humans Really Rational?
The Ultimatum Game: Are Humans Really Rational? Imagine this: I give you $100 and ask you to propose how to split it with a stranger. There’s one catch — if the stranger rejects your offer, neither of you gets anything. Game theory predicts you’ll offer $1 and keep $99. After all, $1 is better than $0, so the stranger should accept. In reality? Most people offer $40-50, and offers below $30 are frequently rejected. ...