Thursday, June 22, 2006

ultimatum game

" What has made me write this today was a post in a weblog about the ultimatum game. When a party put an offer on the table, if the second accept, they will both have something if he rejects, both gain zero. Are we in such a game? One can say so. Look at it this way: I'm making an offer and you get to decide. If you accept we both gain, if you reject none of us gain anything, let alone the losses. Looking at it rationally, you should accept any offer that is bigger than zero. But often the second party would reject. Why? One reason is he thinks he is seing the offer unfair, and would rather not be a medium to facilitate any gain to the unjust party, even this would mean an own loss. But,

But..."

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