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Ultimatum and Dictator Theory Game ion Exercise 1

Ultimatumand Dictator Theory Game ion

Exercise1

Ultimatum Game

Dictator Game

Offer

# of offers

made

# of offers accepted

% of offers

accepted

Proposers

Earned

Offer

# of offers

made

#0

0

0

0

0

#0

2

#1

0

5

0

5

#1

6

#2

3

0

0

0

#2

10

#3

5

3

60

4.2

#3

7

#4

9

15

166.67

10

#4

6

#5

15

12

80

4

#5

4

#6

2

0

0

0

#6

0

#7

0

0

0

0

#7

0

#8

1

0

0

0

#8

0

#9

0

0

0

0

#9

0

#10

0

0

0

0

#10

0

Exercisetwo

Thetable two below shows the plot for the results of ultimate game

Exercisetwo

Thenext table below shows the earning of proposers in the ultimatum game

Exercisefour

Dictatorgame results

Exercisefive

Offersusually rejected, and accepted in Ultimatum game

Theoffers frequently accepted in the Ultimatum game theory were four andfive, followed by offer three. It is generally seen that the proposerwill always offer 5, and it is accepted. Five is the mediumproposition, and rightfully put, it’s the offer where no party willgain at the loss of the other person. Also, the offer of less thanfive will seemingly be rejected, but the respondent also knows thathe/she will gain nothing by dismissal. Because it is better to have alittle, regardless of how small it is than to gain nothing, offer ofless than five will not be rejected in most cases. This is becausethe respondent understands that losing will result to no gain. Thelogic of not accepting anything less than five, and ensuring no lossoccur, makes the acceptance data from the table descent from four,five down to zero. As the table shows, an offer of five will beeasily accepted. On the other hand, offer of six and three were morerejected. Since each person want to gain as much as possible, he/shemust ensure the other players gets as less. To accept the offer ofthree means the proposer will gain more, by seven. The respondentstherefore likely had to reject.

Exercisesix

Mostcommon and highest earning games

Outof the offers made, offer five was the most common, appearing fifteentimes. It is also the second most offer to get the highest acceptancerate. 12 people accepted the offer- the highest was four, with 15players accepting it. Five also produced the second lowest earning.As much mentioned earlier, each player wants to get the mostearnings, and that can only be achieved by ensuring the other playerreceives the lowest earning. As the table says, many players offeredfive the most, but it produce one of the lowest acceptances. Offeringlow values will attract the highest earning, but will likely berejected by the person who will feel hurt. It is therefore onlylogical to offer five, and ensure maximum acceptance while maximizingearnings.

Exerciseseven

Dictatorgame results discussion

Justlike the name dictator sounds- dictator theory game allows the personmaking the offer to propose any amount with no rejection. Since thereceiver has no power to reject, he/she can only make one logicalchoice- to accept any amount and gain. The one offering, based on theidea the receiver cant reject his/her offer, and wanting to earn asmuch as possible, will offer the lowest amounts. Looking at the tableabove, values of four, three and two were made more often. – Thesevalues are the lowest a player can offer, apart from one and zero. Nooffer above the value of five was given, this can be explained by theprincipal of gaining as much from the other player, this means givingthe lowest possible amounts