Lars Jörgen Pålsson Syll is a Swedish economist who is a Professor of Social Studies and Associate professor of Economic History at Malmö University College.
Imagine you and someone you do not know can share $100. It is up to you to propose how to divide the $100 between the two of you, and the other player will need to accept or reject your proposal. If he rejects the proposal, neither of you will receive anything. What sum will you offer the other player?
I have data on the choices of about 12,300 people, most of them students, who were asked this question. Nearly half of the participants (49%) offered the other player the fair offer of $50 …
The participants in the experiment who make the embarrassing offer of just $1 because they learned this in a game theory course are again the distinguished members of the Victims of Game Theory organization. And if they played the game in real life, their achievements would be inferior to those who had not become wise by studying game theory.