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25 April, 14:18

In the ultimatum game, if neither the allocator nor the recipient cared about fairness, what would be the optimal distribution of $20.00?

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  1. 25 April, 14:39
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    If neither the allocator nor the recipient cared about fairness, optimal play in the ultimatum game is straightforward: The allocator should propose a division of the money in which the allocator receives $19.99 and the recipient receives $0.01. The allocator has maximized his or her gain. The recipient should accept the division, because the alternative is to reject the division and receive nothing at all.
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