Ultimatum game(Splitting dollar game)

Last week, Giuseppe A. Paleologo came to our department and give a talk on the experiment study on the wholesale price contract.

As expected, people don't behave "rational" in this setting. In the Ultimaturn game, experiment study reveals people tend to be "fair".

Majority of research in OR field are done based on same assumption in Economy - "Rational people". The question is what if this hypothesis fails?

Schweitzer and Cachon examin people behavior in the very simple game newsvendor. I think it is really good start point.

But the problem is that most applications in the OR field may be too complex to do experiment especially when reward is not high to make people more "rational".