Why might the multiple-play ultimatum game have a different result than the single-play ultimatum game?In the multiple-play ultimatum game, the first player generally offers less money to the second player than in the single-play ultimatum game.The multiple-play ultimatum game leads to a simpler equilibrium: the first player offers exactly half of the total sum to the second player.The multiple-play ultimatum game allows for players to send signals. Therefore, the receiver can punish a player who doesn’t share enough.The multiple-play ultimatum game generally results in less cooperation because both players fall into a back-and-forth pattern of trying to punish the other player.

Ultimatum game is a situation where people are more generous to give the benefit to other person due…

Answered: Why might the multiple-play ultimatum…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Why might the multiple-play ultimatum game have a different result than the single-play ultimatum game?

In the multiple-play ultimatum game, the first player generally offers less money to the second player than in the single-play ultimatum game.
The multiple-play ultimatum game leads to a simpler equilibrium: the first player offers exactly half of the total sum to the second player.
The multiple-play ultimatum game allows for players to send signals. Therefore, the receiver can punish a player who doesn’t share enough.
The multiple-play ultimatum game generally results in less cooperation because both players fall into a back-and-forth pattern of trying to punish the other player.

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