The Ultimatum Game

The Ultimatum Game (UG) is a test of the egoism model and has been utilise to analyze certain aspects of bargaining behavior. It is played a whiz time in pairs of players who do not know iodin another. The two players are assigned the role of either removal comp all or responder. The two divide a sum of money, with the mover specifying the terms of division. The responder has the option of accepting or declining the suggesters base on balls. If the maintain is accepted, the sum is divided as proposed; if the offer is rejected, both players get nothing. Economic models assume that players are rational number and selfish in their finding-making, hence it is predicted that proposers will offer the smallest region possible and responders will accept any positive offer because the alternative is a zero payoff (Wallace, Cesarini, Lichtenstein & Johannesson, 2007). Experiments have coming into courtn that those who bespeak more will often get more (Myers, 2008). However, results discuss that players rarely employ the rational strategy. Proposers typically make offers of 40 to 50% and responders routinely reject offers under 20% (Jensen, cry & Tomasello, 2007). This leaves both parties with lower outcomes than they would have achieved had they acted in accordance with the self-interest model.

Tripp, Sondak and Bies suggest that people look for more than material rewards in their negotiations (as cited in Pillutla & Murnighan, 1996). People are concerned with the interests of others and are highly sensitive to norms of cooperation and fairness (Jensen et al., 2007). When faced with an unfair offer, responders experience a employment between an emotional reject decision provoked by the unfairness of the offer and a rational accept decision based on the desire to maximize ones gain. The rejections of responders show that anger to unfairness overrides the rational choice of accepting any positive offer. This runs contrary to Millers prediction, where when faced with a conflict between a preferred... If you want to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.