How Fair is Fair?

If you’re a student of game theory (or paid really close attention to A Beautiful Mind), you’ll have heard of the ultimate game.

In a nutshell, two players figure out how do divide a sum of money given to them (say, $100). The first player makes an offer (say, $60/$40), and the second player either accepts or rejects it. If the second player accepts they offer, they both get the money. If the second player rejects it, neither of them gets the money. There’s no second round, so reciprocation is not an issue, and both players know the rules when they start.

Typically, in experimental conditions, people accept more equitable distributions, and reject unequal ones.

Brooke Allen, a trader and writer over at Advanced Trading, wants to know how traders (and presumably people who read about trading) react to the experiment, so he has set up little survey. Head over, participate, and we’ll know the results in a few weeks.

[Advanced Trading]

This is a test