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Game Theory 101: The Ultimatum Game

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Published on Oct 3, 2009

Game Theory 101: Bargaining on Amazon: http://amzn.to/1Ug4ahs

http://gametheory101.com/courses/barg...

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?

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