Utility and sub game perfection
Ultimatum Game is an appropriate paradigm that investigates the discord between social motives like fairness and self-interest. UG bases on the assumption that bargainers maximize their outcome. The acceptance of the smallest offer can yield high outcomes and the alternative of refusing means no outcome at all. The social utility model implies that the utility of the outcome depends on both payoffs. The study aims to identify factors that can affect the relative importance in making UG.
A strong reciprocity model in the evolution of human cooperation gains acceptance because of support and experimental findings. An observation that unfair ...