Ultimatum Game Case Study

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Ultimatum games have produced key evidence that people behave altruistic as they are supposed to do. The game looks at two players bargaining for a piece of share. Player 1 is the proposer and player 2, is the responder. Player 1 offers a division of the share. Player can either accept the proposal in which both the players split the amount accepted from the proposal, or reject the proposal in which they both receive nothing. Player 1 is expected to offer the lowest amount possible. Experiments on ultimatum games have shown that proposers often offer a quite huge amount than the smallest amount possible and responders often reject the offer. The responder might feel that the offer was unfair and would rather forgo the amount being offered.