ultimatum game

This note last modified September 1, 2024

Alice is given $100 and told to offer some amount to Bob. Bob can then accept the offer and everyone gets their money, or he can nix the whole deal and no one gets any money.

If Alice offers $1, Bob should take it, but studies have shown anything less than $25 is ignored. Why?

Studies have also shown that Alice will typically offer \(40-\)50


Making people anonymous increases their greed.