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