We are going to play a game called The Ultimatum Game. For this game to work you will have to pretend to act as if this was a real simulation. Act as if there was real money on the table.

Part One

You are Player One. As Player One you are given the opportunity to choose how to divide $100 between you and Player Two. Imagine that there is $100 cash on the table and you (Participant One) are standing across the table form Player Two.

There is only one rule with regards to how you can distribute this money. You get to decide how much you and Player Two get out of the $100 but if Player Two rejects your offer neither of you get the money. For instance, if you decide to keep $90 and offer $10 to Player Two and she rejects this offer neither of you will get any money.

Based on this scenario, how much would you offer Player Two? Please select the amount you would offer Player Two. Remember to act as if this is $100 of real money. What would you actually offer Player Two?

Was your offer accepted? Why do you think that was the case? Why didn’t you offer the lowest possible amount of $1 to Player Two? Or did you? What does this result tell you about yourself or the human mind?

Part 2

Now that you have had the opportunity to play as Player One see how you would respond as Player Two. In the next scenario, Player One will make you an offer and you will have to decide to accept or decline the offer. Again, remember to act as you think you would if there was real money on the table. Please click on the button below to see how much Player One offers you. You now have an offer from Player One. What do you want to do? Will you accept or decline the offer?

Now that you have had the opportunity to play the game let’s take some time to reflect on the results.

For Part 1, as part of this experiment I put in a 30% acceptance threshold which turns out to be approximately the average of what is accepted when this experiment has been done with real money. See what you fellow students offered Player Two.

Note that if you are the first student to do this activity the poll will only have your result in it. If that is the case, I would suggest that you check in in a few days to give your fellow students the opportunity to do the activity as well.