Monday, August 20, 2007

But I Know You Know That I Know

In an ultimatum game proposers offer a smaller fraction of the pie to their opponents if they know this opponent has just seen a movie that is expected to make them happy than if they have seen something of a provocative, and supposedly angry-making nature. The study doesn't appear to say whether proposers were right and people who have just seen a sitcom are willing to accept lower offers. They do report that their original finding disappears as soon as the second player knows the type of movie the proposer has seen and the proposer knows this.

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