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What is ultimatum game?
This is actually an economic experiment which is anonymously based on bargaining between 2 players. It comprises of monetary division in fixed quantity that is divided between them. Here the first player is a responder,and the other is a proposer. The latter has the right to decide on the division of the agreed item. It is entirely dependent on the responder if he wishes to decline the offer or accept it.
Aspects narrated by theorists on this theory
In 1982, existence of a different subgame was highlighted via Nash equilibrium. In this case, the solution was presented by Ariel Rubenstein whose rational forecast stated that even if a share value is less but freely given by proposer, acceptance can be confirmed from the side of responder.
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2 important questions related to repeated ultimatum game
Going through our repeated ultimatum manual, you will find that in the year 1986, Thaler, Knetch and Kahneman made athorough investigation. Based on their study, they did find out 2important aspects. Those were in the form of 2 questions and based on the behaviour of subject and proposer.
Assumptions related to it
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