Werner Güth How Do Players Split an Amount of Money in the Ultimatum Game?
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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: http://dx.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