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DEMO: What Lies Beneath Players' Non-Rationality in Ultimatum Game?
Avanesyan, Galina ; Kárný, Miroslav ; Knejflová, Zuzana ; Guy, Tatiana Valentine
The rational strategy suggested by the game theory predicts a human playing Ultimatum Game (UG) would have tendency to decide in accordance with the assumption of self-interested rationality, i.e. to choose more for oneself and offer the least amount possible for co-players [2]. This “utilitarian” and gametheoretically correct “rational” behaviour is however rarely observed when experiments are conducted with human beings [1]. Long-term research in experimental economics indicates that humans do not behave as selfish as traditional economics assume them to do. In UG, human-responders reject offers they find too low while human-proposers often offer more than the smallest amount. An intuitively plausible interpretation of this phenomenon is that responders would rather give up some profit than be treated unfairly. This “non-rational” behaviour provides an insight into human’s motivation as a social being. The work challenges this view and insists on human rationality.

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