The Ultimatum Game

by B. Traven

The test that Henrich introduced to the Machiguenga was called the ultimatum game. The rules are simple: in each game there are two players who remain anonymous to each other. The first player is given an amount of money, say $100, and told that he has to offer some of the cash, in an amount of his choosing, to the other subject. The second player can accept or refuse the split. But there’s a hitch: players know that if the recipient refuses the offer, both leave empty-handed. North Americans, who are the most common subjects for such experiments, usually offer a 50–50 split when on the giving end. When on the receiving end, they show an eagerness to punish the other player for uneven splits at their own expense. In short, Americans show the tendency to be equitable with strangers — and to punish those who are not.

Among the Machiguenga, word quickly spread of the young, square-jawed visitor from America giving away money. The stakes Henrich used in the game with the Machiguenga were not insubstantial — roughly equivalent to the few days’ wages they sometimes earned from episodic work with logging or oil companies. So Henrich had no problem finding volunteers. What he had great difficulty with, however, was explaining the rules, as the game struck the Machiguenga as deeply odd.

When he began to run the game it became immediately clear that Machiguengan behavior was dramatically different from that of the average North American. To begin with, the offers from the first player were much lower. In addition, when on the receiving end of the game, the Machiguenga rarely refused even the lowest possible amount. “It just seemed ridiculous to the Machiguenga that you would reject an offer of free money,” says Henrich. “They just didn’t understand why anyone would sacrifice money to punish someone who had the good luck of getting to play the other role in the game.”

This interesting story comes from Pacific Standard, which makes us rethink some of the economics and social science research out there explaining how humans behave. Basically, Americans are just totally weird.

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