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Rejecting an unfair offer satisfies preferences for negative reciprocity because it punishes the proposer, depriving him of a larger amount.
The proposer proposes how to share the sum and the recipient can either accept or reject the proposal.
Both paired subjects receive the proposed amounts if proposer's offer exceeds responder's minimum acceptable offer.
In the mini-ultimatum game, players are confronted with situations in which fair does not always mean equal, and so the recipient of an offer needs to take into account the alternatives the proposer had available to her or him.
In the original game, one player (the proposer) splits a certain amount of money into two sums, one for him and the other for another player, the responder.
The responder in this one-shot anonymous game is endowed with an opportunity to punish the proposer's greed, but, if he did, what he does would cost him all he could own.
Because a Texas shoot-out requires the proposer to either buy or sell for the price he names, it gives him a motivation to name a fair price.
Chair of Governors and Proposer, Alban City School.
Thus, when a responder rejects an offer from a proposer in the impunity game, she forgoes her own payoff but the proposer still keeps his payoff.
The proposer had strewn rose petals on the pavement in front of the entrance.
The proposer was carrying two dozen red roses and a small box.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com