PSYC 321 Lecture Notes - Lecture 3: Ultimatum Game, Backward Induction
Document Summary
According to game theory, a the proposer should offer the smallest possible share, and b the responder should accept anything greater than sh. But in human players, the average proposed amount is 40-50% of the total sum. About half of the responders reject below 30% If one country rejects the offer, no country gets to reach an agreement. If it"s a one-shot game, you should always defect. If x rounds (x is known), then you should cooperate first, then defect. Past choices are known to the other. If we don"t know how long the game is. If we can freely choose our partner: real-life examples: Lower wind resistance, benefits: 17% (probability of winning) Drafting first person running or biking to take the most resistance. All countries will benefit from a stable climate. But many countries are hesitant to curb their co2 emissions. The immediate benefit to any country from maintaining their current emission is financial gains and economic growth.
