Exploring Ultimatum Game. On the Irrational Nature of Human Decision-Making

Essay from the year 2016 in the subject Business economics - General, grade: 1.7, Rhine-Waal University of Applied Sciences (Communication and Environment), language: English, abstract: This work is concerned with human irrationality, more specifically with the situation of ultimatum game within game theory.Experimental economics reports evidence of human irrationality, debates on which are of high relevance nowadays. Results of many experiments, particularly games, differ from those expected by neoclassical theory. Human behavior often goes beyond rational choice, prioritizing feelings and beliefs.Researchers define many factors that influence outcomes of such choice. Present paper by dint of literature review focuses on the ultimatum game in order to understand what factors influence players while making decisions and how they affect outcomes.Moreover, the paper aims to gather different findings together in order to have a full picture of factors discovered to date. Thus, feeling of justice and fairness, cultural background, time, gender, attractiveness and even mood affect the outcomes of ultimatum game are addressed.