Werner Güth How Do Players Split an Amount of Money in the Ultimatum Game?

Werner Güth is the Director of the Strategic Interaction Group at the Max Planck Institute of Economics, in Jena. Previously, Güth was professor at the Humboldt-University, Berlin. His specific take on economics, particularly game theory, experimental economics and microeconomics, is shaped by a strong interest in the social sciences, such as psychology and philosophy. In the field of game theory, Güth traces back one of the most famous economic experiments, following the psychological decision making processes of two game players. His research is set to account for different outcomes of the game, when it is modified.

Area of Research

Economic Theory, Philosophy, Political Sciences

since 2002

Professor

Friedrich Schiller University Jena (Friedrich-Schiller-Universität Jena)

since 2015

Senior Professor

Frankfurt School of Finance & Management

2001-2014

Director of the Strategic Interaction Group

Max Planck Society (more details)

Max Planck Institute of Economics

1994-2001

Professor

Humboldt University of Berlin (Humboldt-Universität zu Berlin)

1986-1994

Professor

Goethe University of Frankfurt (Goethe-Universität Frankfurt am Main)

1977-1986

Professor

University of Cologne (Universität zu Köln)

1976

Habilitation

University of Münster (Westfälische Wilhelms-Universität Münster)

Faculty of Economics

1972

PhD in Economics

University of Münster (Westfälische Wilhelms-Universität Münster)

Faculty of Economics

1970

Diploma in Economics

University of Münster (Westfälische Wilhelms-Universität Münster)

Faculty of Economics

Fellowships

Honorary Doctorate from the University of Tübingen (2010)

© Maximilian Dörrbecker

Max Planck Society


"The Max Planck Society is Germany's most successful research organization. Since its establishment in 1948, no fewer than 18 Nobel laureates have emerged from the ranks of its scientists, putting it on a par with the best and most prestigious research institutions worldwide. The more than 15,000 publications each year in internationally renowned scientific journals are proof of the outstanding research work conducted at Max Planck Institutes – and many of those articles are among the most-cited publications in the relevant field." (Source)

Institute

Max Planck Institute of Economics

"The Max Planck Institute of Economics was established in Jena in 1993. Founding director was Prof. Emeritus Dr. Manfred E. Streit. The original research focus was laid on the transformation of former socialist economies. Subsequently, a broader spectrum of research topics was added, e. g. the question of the driving forces and laws for economic change in general, the research of determinants for in-novative entrepreneurial activities as well as strategic interaction.

During the two decades of its existence, four research departments were located at the MPI of Economics: Institutional Economics and Economic Policy (1993-2000, director: Manfred E. Streit), Evolutionary Economics (1995-2013, director: Ulrich Witt), Entrepreneurship, Growth and Public Policy (2005-2010, director: David Audretsch) and the department Strategic Interaction (2001 - 2012, director: Werner Gueth). Furthermore, the institute has been actively engaged in promoting junior scientists. Two interdisciplinary and international graduate programs, that will be existing beyond 2014, have been established with substantial involvement of the institute: The International Max Planck Research School on Adapting Behavior in a Fundamentally Uncertain World (IMPRS Uncertainty) and the doctoral program 'The Economics of Innovative Change'." (Source)

Map

The ultimatum game is one of the most famous experiments in economics. It involves two players, one of them receives a sum of money which he has to share with a second player. The first player, the “proposer”, can decide how much he offers the second player, called “responder”, who can either accept or reject the offer. If the responder rejects, neither of the players receives any money. Mathematically, the first intuition is to offer the opponent the smallest amount possible. However, during the game players routinely reject even high offers if they deem the split unfair. In this video, WERNER GÜTH explains how he came to develop the ultimatum game and how modifications of the game produce different outcomes.

LT Video Publication DOI: https://doi.org/10.21036/LTPUB10159

An Experimental Analysis of Ultimatum Bargaining

  • Werner Güth, Rolf Schmittberger and Bernd Schwarze
  • Journal of Economic Behavior and Organization
  • Published in 1982

Chicago

Werner Güth, Rolf Schmittberger and Bernd Schwarze. "An Experimental Analysis of Ultimatum Bargaining." Journal of Economic Behavior and Organization 3 (1982): 367-388.

How Werner Güth's Ultimatum Game Shaped Our Understanding of Social Behavior

  • Eric van Damme, Kenneth G. Binmore, Alvin E. Roth, Larry Samuelson, Eyal Winter, Gary E. Bolton, Axel Ockenfels, Martin Dufwenberg, Georg Kirchsteiger and Uri Gneezy
  • Journal of Economic Behavior & Organization
  • Published in 2014

Chicago

Eric van Damme, Kenneth G. Binmore, Alvin E. Roth, Larry Samuelson, Eyal Winter, Gary E. Bolton, Axel Ockenfels, Martin Dufwenberg, Georg Kirchsteiger and Uri Gneezy. "How Werner Güth's Ultimatum Game Shaped Our Understanding of Social Behavior." Journal of Economic Behavior & Organization 108 (2014): 292-318.

Evolutionarily Stable Co-Operative Commitments

  • Werner Güth and Hartmut Kliemt
  • Theory and Decision
  • Published in 2000

Chicago

Werner Güth and Hartmut Kliemt. "Evolutionarily Stable Co-Operative Commitments." Theory and Decision 49 (2000): 197-222.