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How Ultimatum Offers Emerge: A Study in Bounded Rationality

Author

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  • Werner G³th

    (Humboldt-University of Berlin, Department of Economics, Institute for Economic Theory III, Berlin, Germany)

Abstract

The general framework of decision emergence (G³th, 200a) 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", "Adaption Procedure" and "Learning" have to be specified for the task at hand. This illustrates the applicability of the general framework of boundedly rational decision emerge.

Suggested Citation

  • Werner G³th, 2001. "How Ultimatum Offers Emerge: A Study in Bounded Rationality," Homo Oeconomicus, Institute of SocioEconomics, vol. 18, pages 91-110.
    • Handle: RePEc:hom:homoec:v:18:y:2001:p:91-110
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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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