Final answer:
In the ultimatum game, the average offer tends towards fairness, often close to a 50-50 split, and unfarily low offers are typically rejected due to a desire for equity and penalizing unfairness, demonstrating that decisions are not solely driven by self-interest.
Step-by-step explanation:
The mean offer in the ultimatum game typically is one that strives for fairness, often between a 50-50 split and a 70-30 split. The typical threshold of rejection is when offers deviate substantially from what is perceived as fair. Although rational behavior would suggest that any amount is better than nothing and thus Player B should accept any positive offer, in practice, offers that are seen as unfair are often rejected. This behavior reflects a desire for fairness over maximizing self-interest.
Experimental data shows that Player A is likely to make a fairly generous offer to avoid rejection by Player B. Rejection of unfair offers serves to penalize unfair behavior and can influence future interactions, particularly if the same players interact multiple times. Context, such as the relationship between the players or the total amount of money involved, greatly influences decision-making within the game.
The ultimatum game reveals that human nature is complex and not solely driven by self-interest. Instead, notions of fairness and strategic behavior play a crucial role in decision-making. This complexity extends to political scenarios, where negotiation is affected by various factors, including the number of players, potential rule changes, and the use of other tactics such as threats or deception.