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Example

Defining the Rules of the Ultimatum Game

In the ultimatum game, the 'rules of the game' or institutions explicitly define the structure of the interaction. These rules determine the total amount to be divided (the pie's size), assign the roles of Proposer and Responder, outline the Proposer's permissible actions (offering any portion of the pie), specify the Responder's choices (to accept or refuse the offer), and dictate the final allocation of the pie based on the players' decisions.

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Updated 2026-05-02

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