Two players are chosen
at random, one is designated as the proposer, the other as the responder.
The experimenter offers 100 points to the team. The proposer has to propose
a share of it to the responder. If the responder accepts, this is how the
100 points are split. However, if he rejects the proposal, none of the
players receives anything.
Number of players: 30 (15 games)
Mean proposal: 39 ± 10.7
Distribution of proposals:
The rational strategy is
to offer 1 point, and to accept everything. In reality, offers below 30%
get mostly rejected. In a vast majority of studies conducted with different
incentives in different countries, some 60-80% of proposers offer between
40% and 50% of the total sum, and only 3% of proposers offer less than
20%. Conversely, some 50% of responders reject offers below 30% of the
The vast majority (73%) offers 40 or 50 points.
Surprisingly one offer of 40 is rejected
Written by Christoph Hauert