Hugo Ahlberg

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The purely logical way to play the ultimatum game is for the first person to offer the minimum (e.g., a $9.99/$0.01 split) and for the second person to accept it, since otherwise they would get nothing, and there is no other negotiation possible. In practice, though, across most cultures, the second person usually rejects offers lower than 30 percent of the total, because of the perceived unfairness of the offer. In these circumstances the second person would rather deny the first person anything, even at the expense of receiving nothing themselves. It is important that you keep this strong ...more
Super Thinking: The Big Book of Mental Models
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