There is also some game theory going on there. The second player is also offering the first an ultimatum. In theory, if the second player says they would only c

There is also some game theory going on there. The second player is also offering the first an ultimatum. In theory, if the second player says they would only corporate for a 1/99 split, the second player should accept that deal (assuming the 1% is still greater then the effort that the first player needs to put in). In essence, there is a range of splits that is mutually beneficial, and it is a negotiation to decide which of those splits to take. As anyone who regularly negotiates knows, a key asset in negotiations is the credible ability to walk away. If people have multiple negotiations, then the ones who are willing to let slightly profitable deals fall through will often do better in net because the deals they do make will be even more profitable then they would otherwise be. Much of economics can be seen through this lenses. For instance, monopolies can be thought of as the monopoly holder playing an ultimatum game with all of the consumers. Since the monopoly holder has a much higher ability to walk away from a deal they are able to force the trade at a price point that allows them to capture more of the net benefit.