The Ultimatum Game
There are two basic motivators for humans. These are fear of loss and hope of gain. This dynamic animates every choice we make. There is overlap. There is some vicissitude from one decision to the next, but most people will generally align themselves into one camp or the other over their lifetimes. ”Fear of gain” and ”hope of loss” do not exist as motivators, but the way people perceive gain and loss, are relative. The concept of value comes into play. And human interaction, with its perceived value, has an impact. The two basic motivators then, nudge people toward what they value.
Interesting studies show that in general, persons place a higher value on things they possess or think they are owed, than they value the very same things if they were trying to obtain them. Your used car, or your house is worth more to you as the owner/seller than the same car or house would be if you were trying to buy them.
A study on the psychology of economics (Neuroeconomics) called the Ultimatum game presents some interesting findings. First developed in 1982, it has been repeated many times, across many different cultures and countries, and with many variations. There is an abundance of information online if you care to indulge yourself further.
The typical format for the basic version of the Ultimatum game groups participants into pairs; a proposer, and a responder. They…
