Insight · ★★☆☆☆ · ~5 min
The Ultimatum Game
$100 to split. Cold logic says offer $1 — real humans say otherwise.
by MindYourPuzzle
A cornerstone of behavioral economics — it shattered the idea that people are purely self-interested.
Two strangers, one chance, $100 to split:
- You (the Proposer) offer a split — anything from "$1 for you, $99 for me" to "$50/$50."
- The other person (the Responder) either accepts (you both keep the split) or rejects (you both get $0).
One round. No negotiation. You'll never meet again.
A purely logical responder should accept any positive offer — even $1, since $1 beats $0.
Knowing that, what should you — the Proposer — offer to walk away with the most money?
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