Ultimatum Game, Analysis with Human Root Motivation To Be Number One

Abstract:     
Economics experiments of ultimatum game indicate unfair distribution proposals of 80 percent to 20 percent of given money would be often rejected. That is, experimental results have disproved economic man hypothesis which states rational humans would accept any positive welfare in order to maximize their utilities. However, exact mechanisms behind these experiments are still unknown. Here we examine ultimatum game model to reveal wealth distribution principles in order for various modes of cooperation in humans to be understandable. Ultimatum game will be classified into acquainted and unacquainted versions indicating two game players are familiar and unfamiliar, respectively. We will see there are infinite feasible distribution schemes of given wealth in an ultimatum game, i.e., humans have enough opportunities to cooperate in economic scenarios making human economy flourishing, indeed.

Number of Pages in PDF File: 30

Keywords: Ultimatum game, Wealth distribution, Human behavior, Human motivation, Human nature, Cooperation

JEL Classification: A12, B41, C78, J78

working papers series