Posts Tagged ‘Ultimatum’
May 6th, 2010 | 
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Tommy and Angelica have to divide a dozen cookies between themselves. Tommy’s parents have given Angelica the responsibility of choosing how to split them. The catch: if Tommy doesn’t like the offer, he can reject it and leave both children with nothing. How do they rationally work through their situation? This video also serves as a soft introduction to forward introduction–note that we must guess what sort of offers the first player will make and then check to see how the second player will respond.
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