ADMN 3300H Lecture Notes - Lecture 3: Ultimatum Game, Dictator Game
30 Mar 2020
School
Department
Course
Professor
Document Summary
It"s hard to notice ethical predicaments unless we are actually looking for them. A lot of reasons for this, including our cognitive processing as human beings. The bat costs one dollar more than the ball. In general terms, humans tend to make many, if not most, decisions (about ethics) using x-system processing. How might this be problematic: can lead us to be very error prone in every aspect of ethical decision-making (i. e. it is often difficult to recognize; to effectively evaluate and take good action. Bounded ethicality refers to the psychological (cognitive thinking processes) that lead even really good people to engage in ethically questionable behaviour this occurs even when it contradicts their own ethical values. The ultimatum game demonstrates that most people offer and also expect to receive a "fair" split. So, fairness is an important value, despite what classical economic theory says.
