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Presh Talwalkar

“Method 5: Appear Crazy (At Your Own Risk) The normal economic assumption is that people maximize utility or profits. Given a choice of ten cents or no cents, a person would choose ten cents, regardless of what opponents get. Consider the following game, known as the ultimatum game. We will explain this game a bit more in the next section. For now, we cover the basic idea. In the game, there is $1 at stake, and your opponent offers you a take-it or leave-it portion of the dollar. If you accept the split, then you keep your portion, and your opponent gets the rest. If you reject, the $1 is burned and both of you go home with nothing. The game theory solution is that your opponent offers you one cent (or no cents) and you accept. You do not care that you are taken advantage of because, rationally, taking home some money is better than rejecting and taking home nothing. So even if you think a one cent offer is unfair, you do not exact vengeance by rejecting. But let's say you threaten that if you do not get at least 50 cents you will definitely reject”

Presh Talwalkar, The Joy of Game Theory: An Introduction to Strategic Thinking
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The Joy of Game Theory: An Introduction to Strategic Thinking The Joy of Game Theory: An Introduction to Strategic Thinking by Presh Talwalkar
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