Game Changer - the game theory podcast
How to make an offer the other side cannot refuse | with Lionel Page
Jan 4, 2022
Guest Lionel Page, Professor of Economics at UTS, discusses his recent research on starting offers in bargaining. Explore the unexpected behavior in making offers, theories on individuals' reactions to inequality, and the influence of the first offer in negotiations. Gain insights into the dynamics of haggling and practical tips for crafting a successful first offer.
32:16
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- People value fairness over pure monetary gain, challenging the assumption of solely motivated self-interest.
- Finding the right balance between a favorable first offer and maintaining fairness is crucial in negotiation.
Deep dives
Insights from the Ultimatum Game
In the podcast episode, the ultimatum game is discussed as a classic experiment in which two players negotiate to split a sum of money. Contrary to the expectations of traditional economics, it is found that low offers are often rejected, indicating that people value fairness over pure monetary gain. Additionally, the most common offer in this game is a 50-50 split, suggesting a preference for equitable outcomes. This challenges the assumption that individuals are solely motivated by monetary self-interest.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
