Ultimatum game

The Ultimatum Game is a simple economic experiment involving two participants. One person (the proposer) offers a division of a fixed amount of money with another person (the responder). The responder can either accept the offer, allowing both to receive the proposed amounts, or reject it, resulting in neither person receiving anything. This game highlights how people value fairness and their willingness to sacrifice their own gain to punish perceived unfairness. It demonstrates that decisions are influenced not just by self-interest but also by social and emotional factors, challenging traditional economic theories focused solely on rational behavior.