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> It turns out you _could_ screw them over and they'd End up with a dollar in their pocket which they otherwise wouldn't have. The Ultimatum game is a useful
by samatman 2y ago
> It turns out you _could_ screw them over and they'd
End up with a dollar in their pocket which they otherwise wouldn't have.
The Ultimatum game is a useful insight into human psychology: for one thing, it tells us who thinks that the defector in this equilibrium is better off than a counterfactual cooperator.
Ah, but they have their pride! Ok. My pride is not affected by someone else having 99 bucks they didn't earn, and myself $1 likewise. Maybe that other fellow really needed the money.
- roughly 2y agoIndeed. You’re very wise!
- imtringued 2y agoI don't know what the hell you're talking about. Your argument is incoherent. If you wanted to allocate the money according to the individual's utility of money, then a rule of thumb of $1 is going to be wrong. You should, given no information, assume that both have the same utility of money and that the utility of money is diminishing, favouring an even split.