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Experiments on the Ultimatum Game (UG) repeatedly show that people's behaviour is far from rational. In UG experiments, a subject proposes how to divide a pot and the other can accept or reject the proposal, in which case both lose everything. While rational people would offer and accept the...
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game theory predictions. However, those models are short of providing a general theory of behavior in economic interactions …. In two previous articles, we proposed a rational theory of behavior in non-cooperative games, termed Economic Harmony … theory (EH). In EH, we retained the rationality principle but modified the players' utilities by defining them as functions …
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scope of our theory, which does not apply in the case of a perfectly indifferent decision-maker. …
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This paper addresses the role of affect and emotions in shaping the behavior of responders in the ultimatum game. A huge amount of research shows that players do not behave in an economically rational way in the ultimatum game, and emotional mechanisms have been proposed as a possible...
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