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How ultimatum offers emerge: A study in bounded rationality

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  • Güth, Werner

Abstract

The general framework of decision emergence (Güth, 2000a) is applied to the specific decision task of a proposer in ultimatum bargaining, i.e. to choosing how much the responder should be offered. For this purpose the Master Module as well as its submodules New Problem Solver, Adaptation Procedure, and Learning have to be specified for the task at hand. This illustrates the applicability of the general framework of boundedly rational decision emergence.

Suggested Citation

  • Güth, Werner, 2000. "How ultimatum offers emerge: A study in bounded rationality," SFB 373 Discussion Papers 2000,29, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  • Handle: RePEc:zbw:sfb373:200029
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    References listed on IDEAS

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    Cited by:

    1. Hennig-Schmidt, Heike & Li, Zhu-yu & Yang, Chaoliang, 2004. "Why People Reject Advantageous Offers – Non-monotone Strategies in Ultimatum Bargaining," Bonn Econ Discussion Papers 22/2004, University of Bonn, Bonn Graduate School of Economics (BGSE).
    2. Jens Newig, 2004. "Public Attention, Political Action: the Example of Environmental Regulation," Rationality and Society, , vol. 16(2), pages 149-190, May.

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