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Rolf Schmittberger: 2 ideas worth knowing

2 ideas from Rolf Schmittberger, each explained in a minute and credited to the original work. Free on Savvy.

• The game where 'free money' gets rejected on principle

  In the ultimatum game, one player proposes how to split a sum and a second player can accept or reject it; a rejection means both get nothing. Classical economics predicts responde…

  — Werner Güth, Rolf Schmittberger & Bernd Schwarze, An Experimental Analysis of Ultimatum Bargaining

• Turn down free money to punish an unfair split? Most people do exactly that.

  In Werner Guth's 1982 ultimatum game, one player proposes how to split a sum of money and the other can accept or reject it — rejecting means both walk away with nothing. A purely …

  — Werner Guth, Rolf Schmittberger & Bernd Schwarze, An Experimental Analysis of Ultimatum Bargaining

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