MindYourPuzzleMindYourPuzzle
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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