Ultimatum game

The ultimatum game is a game that has become a popular instrument of economic experiments. It was first described by Werner Güth, Rolf Schmittberger, and Bernd Schwarze: One player, the proposer, is endowed with a sum of money. The proposer is tasked with splitting it with another player, the responder. Once the proposer communicates their decision, the responder may accept it or reject it. If the responder accepts, the money is split per the proposal; if the responder rejects, both players receive nothing. Both players know in advance the consequences of the responder accepting or rejecting the offer. The ultimatum game is a game that has become a popular instrument of economic experiments. It was first described by Werner Güth, Rolf Schmittberger, and Bernd Schwarze: One player, the proposer, is endowed with a sum of money. The proposer is tasked with splitting it with another player, the responder. Once the proposer communicates their decision, the responder may accept it or reject it. If the responder accepts, the money is split per the proposal; if the responder rejects, both players receive nothing. Both players know in advance the consequences of the responder accepting or rejecting the offer.