Ultimatum game

Ultimatum game - Wikipedia, the free encyclopedia

The ultimatum game is a game often played in economic experiments in which two players interact to decide how to divide a sum of money that is given to them. The first player proposes how to divide the sum between the two players, and the second player can either accept or reject this proposal. If the second player rejects, neither player receives anything. If the second player accepts, the money is split according to the proposal. The game is played only once so that reciprocation is not an issue.

This game tests whether people are more likely to cooperate or compete, for example a V-Bi team would either offer 50% or any other amount and then split it in half or a normal deviation from this at the end.

If the two players are Iv-B then they are trying to bluff each other, the results should then vary chaotically from booms to busts where sometimes the first player does well and sometimes the second player does. With this competition there should be no normal or equilibrium result.