The Ultimatum Game

The Ultimatum Game is a psychological experiment that explores fairness and decision-making. In this game, one player (the proposer) is given a sum of money and must decide how to share it with another player (the responder). The responder can either accept the offer or reject it. If the offer is rejected, neither player receives anything. The game reveals insights into human behavior, as proposers often offer a fair split to avoid rejection, while responders may turn down low offers to punish perceived unfairness, even at a cost to themselves. This illustrates the complexities of social cooperation and fairness.