Interactive module
Ultimatum Game
Offer a split and compare strict rationality with human fairness.
Rule ledger
casePlayer A splits $100. Player B accepts or rejects the entire deal.
rule
accept if offer > 0 in the rational model; accept if offer >= threshold in the fairness modelquestionWhen one strategy changes alone, whose payoff or fairness changes first?
Split $100
A keeps $65
B gets $35
Accepted
Rational model
Accepts
Human fairness model
Accepts
How to read this result
The strict rational model asks only whether there is money to take. The fairness model also asks whether the split feels respectful.Formula
accept if offer > 0 in the rational model; accept if offer >= threshold in the fairness modelPeople often reject low offers because fairness has value too.
Step-by-step Explanation
Scenario
Player A splits $100. Player B accepts or rejects the entire deal.
Why This Matters
Markets, negotiations, and product pricing all depend on perceived fairness.
Beginner-Friendly Summary
A technically profitable offer can still fail when the other side feels disrespected.
Try changing the strategy and watch which result changes first.